Murray River Organics IPO signals new approach
Australia’s largest fully integrated producer of dried vine fruits, Murray River Organics, is expected to soon list on the Australian Securities Exchange.
Founded in 2008 by Jamie Nemtsas and Erling Sorsen, the Sunraysia located operation, which produces commercial quantities of sultanas and other dried fruits, is expected to raise AUD $50 million from the float, according to a report in The Australian on 14 October 2016.
Murray River Organic’s dried fruits are certified with a number of organic certification organisations in Australia, the United States of America, Japan, China and South Korea; helping to feed growing demand for organic foods.
The growth of organics
According to the latest Australian Organic Market Report, published in 2014, Australia’s organics industry is worth AUD $1.72 billion and that it grew approximately 15 per cent each year between 2009-2014.
The same report states that between 2014-16 global sales of organic food and beverage are expected to continue showing higher growth than non-organic food and beverages. Within this period, there is expected to be an overall global organics growth rate of 5.1–5.9 per cent.
Organic fruit is also listed amongst the top five organic exports from Australia (as of 2014)
The top five exported products in 2014 are also similar to 2012:
- Processed foods
- Wine and beverages
- Fruit and vegetables
Could Murray River Organic’s be the next Bellamy’s?
Murray River Organic’s ASX listing follows in the footsteps of Bellamy’s Organic, another Australian organic food company which has listed on the ASX and has been successfully servicing the growing demand for organics. For its 2016 financial year, Bellamy’s reported a record results, with a AUD $38.3 million net profit, a 322 per cent increase on its 2015 financial year.
Bright Foods, the Chinese owner of leading Australian-created dried fruit brands, Sunbeam and Angas Park, is also believed to be preparing for a float on the Hong Kong stock exchange and wanting to take advantage of a growing Asian demand for “clean” foods.
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