Harvey Fresh to buy Challenge assets

The assets of Challenge Australia Dairy are to be bought by WA-owned dairy and fruit juice processor Harvey Fresh.

Countryman understands Harvey Fresh has entered into an agreement to purchase the assets of Challenge Australia Dairy at an undisclosed price, with the purchase due to be completed on or before March 31.

A spokesman for Harvey Fresh said that under the terms of the purchase, Harvey Fresh would buy certain land, buildings, plant and equipment at Challenge’s Boyanup and Capel sites from the Challenge Dairy receivers, Derrick Vickers and Kate Warwick of PricewaterhouseCoopers. The spokesman said Harvey Fresh had assessed the viability of resuming operations at Challenge but decided it would not be commercially viable.

“As a result, Harvey Fresh does not intend to restart dairy processing at Challenge Dairy, but will use the Challenge site as a logistics and storage site to assist its nearby Harvey operations.”

Harvey Fresh currently receives milk from more than 70 WA dairy farmers, including 25 farmers who previously formed part of the Challenge Dairy Co-operative.

Milk supplied by these farmers is used for Harvey Fresh-branded fresh milk, long-life milk, flavoured milk, yoghurt, cheese and custard brands for local and export markets.