GOODMAN Fielder is facing increased competition in the commercial edible fats and oils market after abandoning a $240 million sale to rival Cargill.
Cargill, which entered the Australian fats and oils industry three years ago, has flagged plans for an aggressive expansion of its share of the market in Australasia through acquisitions, organic growth and possibly greenfield developments, The Australian Financial Review reports.
"There's a whole emerging set of needs around fats and oils as primary ingredients to help a lot of the food companies and the retailers bring new products to consumers, and we plan to help them do that," said Stan Ryan, head of Cargill's local food ingredient systems.
"Goodman would have given us a lot of critical mass and size overnight and make those things a lot quicker and easier. But we're very committed to taking care of those customers and growing the business."