As part of the acquisition, processor Freedom Foods contributed $4.6 million in equity funding in return for a 10 per cent stake in the dairy, near Undera in Northern Victoria
Freedom Foods said the purchase would expand production in a renowned dairy farming region.
“Providing the opportunity to leverage its integrated approach to deliver sustainable production of high quality milk, supporting a range of value-added product opportunities,” the company said.
AFMH currently operates a fully integrated dairy farming operation, Moxey Farms, located in the Lachlan Valley, 340 km west of Sydney.
With the acquisition of the Coomboona Dairy operation, current AFMH operations are forecast to produce more than 150 million litres in 2019.
AFMH is a strategic partnership owned by the Moxey and Perich families and other shareholders including Freedom Foods Group, which has a 10 per cent equity shareholding in AFMH.
Freedom Foods is now utilising a growing proportion of the dairy milk output from both Moxey Farms and Coomboona Dairy for its Australia’s Own Kid’s Milk and other dairy product formats.
Progress is continuing on Freedom Foods’ nutritional and UHT investments in Shepparton with processing at both facilities expected to commence this month.