In a what one of the players is describing as an opportunity that happened quickly, Mōkai-based dairy company Miraka is being sold to Open Country Dairy.
The news was released in joint media announcements by both companies on Monday (September 1) just after 11am.
Further details of the agreement under which Open Country Dairy would acquire 100 per cent of Miraka, were not available said a Miraka spokesperson and the release noted that the board would not be conducting interviews.
Land-based trust Tūaropaki Trust – one of Miraka’s Taupō-based shareholders – also said it would not be making comment but was focussing on communicating to its owners and shareholders.
Miraka said day-to-day operations would continue as usual for its farmer suppliers, customers, and kaimahi (employees) – estimated online at around 100.
Founded in 2010, Miraka became operational with its first batch of milk powder exports in August 2011 and has grown its production to around 300 million litres of milk per year.
According to two online business information websites the company’s recent annual revenues have exceeded $100 million.
The dairy processor is the country’s second largest Māori-owned global export company and was the world's first to use renewable geothermal energy in dairy processing.
In February then chief executive Karl Gradon, who departed in March this year citing personal and family reasons, said the company had set its sights on being fully powered by renewable energy by 2030 in line with its core value, kaitiakitanga.
In September 2024, Miraka launched New Zealand's first green hydrogen dual fuel powered milk collection tanker.
On the sale to Open Country Miraka board chair Bruce Scott said the company had a lot to be proud of over the past 15 years.
“However, there are significant challenges that come with being a standalone regional processor operating in a global market. Under Open Country Dairy’s ownership, our Miraka whānau will be part of a strong New Zealand-owned network serving the global dairy market.”
Miraka would continue to operate its current name and brand in the market, and work closely with stakeholders and the local community to ensure a smooth transition and long-term benefits for the community, said the Miraka release.
Miraka is supplied by around 100 farms close to its Mōkai factory.
Shareholders are listed as Māori landowners who have owned their lands for generations (Tūaropaki Trust, Wairarapa Moana Trust, Hauhungaroa Partnership, Waipapa 9, and Tauhara Moana Trust) as well as strategic cornerstone partner Vinamilk, a leading Vietnamese dairy producer.
Open Country CEO Mark de Lautour said the purchase made sense.
“We have admired the Miraka location and milk supply network for a long period given it sits nicely between our Whanganui and Waikato operations. While we are still completing our recent Mataura Valley Milk acquisition, we were immediately interested when the opportunity came along to look at Miraka...
“The shareholders of both Miraka and Open Country believe the deal provides clear benefits for the combined business.”
Open Country operates four dairy ingredient manufacturing sites in Horotiu, Waharoa, Whanganui and Awarua. Mataura Valley Milk near Gore will be added once a conditional acquisition agreement is finalised.
De Lautour said Miraka’s acquisition bolstered Open Country’s footprint across the Central North Island.
“Over time, the ideal geographic position of Miraka means Open Country can optimise our milk collection across the wider region. Our increased scale throughout the Central North Island allows us to realise some important efficiencies.
“Even though the Miraka team will operate under its own brand, we will work hard to ensure their suppliers and staff feel a part of the wider Open Country team.”
According to one post on a financial advice website the decision to sell to Talley’s-owned Open Country was a case of sale or liquidation.
The post said: “In a letter to owners, seen by NBR, Tūaropaki Trust chair Gina Rangi said Miraka's position had become untenable. The company had not reported a profit or paid a dividend for several years and carried $36 million in debt to BNZ.
Last month, Miraka asked shareholders for an urgent loan to continue operations. Trustees declined, noting they had already provided financial support in the past and further funding would not safeguard the interests of owners.
"This left only two options: sell Miraka to a willing buyer or the BNZ would appoint a liquidator," Rangi said. "Despite difficult circumstances and very tight timelines, we are grateful that a sale was achieved, avoiding the appointment of a liquidator. This is by far the best outcome."
She said while the sale was disappointing, it protected jobs, ensured suppliers were paid, and kept the Mökai plant operating.
