The merger, which is subject to the approval of co-operative members and Canadian regulatory authorities, was agreed between the Board of Directors of Agropur and Farmers Co-operative Dairy.
Commenting on the agreement, Agropur chairman Serge Riendeau said: “The merger of our two co-operatives is a first for Agropur in decades. The merger will allow us to better serve our customers on a national basis, and support the overall objective of consolidating the co-operative milk processing sector for the benefit of the member dairy farmers.”
Farmers Co-operative Dairy chairman, Jeannie van Dyk added: “By joining forces, we believe that the new merged entity will be well equipped to ensure a sustainable dairy industry in the Atlantic Provinces.”
If approved, the co-operatives have set a target date of April 2013 to close the deal.