Bega Cheese has remained tight-lipped about whether it is pursuing a potential takeover of troubled dairy processor Murray Goulburn but has said it has a strong enough balance sheet to fund growth opportunities, including acquisitions.
Bega Cheese and Canadian dairy giant Saputo are believed to be among the front runners for acquiring Murray Goulburn.
Murray Goulburn confirmed in September that it has had approaches from a number of suitors interested in either buying some assets or taking over the whole co-operative.
Bega Cheese executive chairman Barry Irwin and chief executive Paul van Heerwaarden did not mention Murray Goulburn at its annual general meeting at Kalaru in NSW on Tuesday.
But Mr van Heerwaarden did say Bega's very strong balance sheet put the company in a position to consider growth opportunities, including those in dairy and those that went beyond dairy products.
"Bega Cheese has always maintained a strong balance sheet believing that we should be in a position to respond to business opportunities if and when they present themselves," Mr van Heerwaarden said.
Murray Goulburn is expected to say more about the sale process at its annual general meeting on Friday.
Mr Irwin told Bega shareholders that Bega had become the company of choice for Australian dairy farmers over the past few years.
"We've had a phenomenal inquiry from dairy farmers wanting to transfer supply to us," Mr Irwin said.
"We did accept some in the 2017 financial year and have clearly taken more this year as our capacity has allowed us to."
In August, Murray Goulburn reported a $370.8 million loss for the year to June 30 amid plummeting milk supplies.
Dairy suppliers have been deserting the co-operative after it unexpectedly slashed its farmgate milk price in April 2016, sparking chaos across the industry
Mr Irwin on Tuesday also said Bega's nutritionals business had returned to stability, and there were further growth opportunities in that area, the high-value dairy ingredients business and in the international and Australian food service and retail channels.
Bega shares were five cents higher at $7.70 at 1256 AEDT.
