Fonterra’s Brand Sale: Short-Term Gain, Long-Term Loss?
Fonterra’s decision to sell its brands business—home to household names like Anchor, Mainland, and Kapiti—to French-owned Lactalis for NZ$3.85 billion has sparked intense debate. While the deal promises a windfall for farmer-owners amid strong dairy prices, critics argue it represents a short-term tactical win but a long-term strategic failure. When Fonterra was formed, the vision…
Fonterra Ditches A2, Goes All In on Lactose-Free
A Major Agribusiness Pivot Sees Fonterra Discontinue Its A2 Milk Line to Focus on New Zealand’s Fastest-Growing Dairy Segment. In a strategic move set to reshape a key segment of the agribusiness market, New Zealand dairy giant Fonterra has announced the discontinuation of its A2 milk range. The cooperative’s decision, confirmed in a notice, is a clear…
Fonterra lifts FY25 forecast Farmgate Milk Price
Fonterra Co-operative Group Ltd has today increased the 2024/25 season forecast Farmgate Milk Price from $10.00 per kgMS to $10.15 per kgMS, with the range narrowing from $9.70 – $10.30 per kgMS to $10.10 – $10.20 per kgMS. CEO Miles Hurrell says “as we close out the FY25 year, I’m pleased to be in the…
Fonterra agrees sale of Consumer businesses to Lactalis
Fonterra agrees sale of Consumer and associated businesses to Lactalis Fonterra Co-operative Group Ltd today announced it has agreed the sale of its global Consumer and associated businesses to Lactalis for $3.845 billion, subject to certain customary financial adjustments and conditions including approval by farmer shareholders, separating the businesses being sold from Fonterra, and receipt…
Fonterra meeting functional dairy ingredients demands of North Asia
In the dynamic markets of Japan and South Korea, Fonterra has emerged as a crucial player in the evolving world of functional dairy ingredients. These countries represent a unique combination of demographic shifts, health consciousness and culinary innovation that is transforming the dairy landscape. With Japan boasting more than 90,000 centenarians and South Korea projected…
ACCC approves merger of dairy giants Lactalis and Fonterra
The Australian Competition and Consumer Commission (ACCC) has approved a merger between the country’s two largest dairy processing companies, Lactalis and Fonterra. The planned takeover of Fonterra’s consumer, dairy ingredients and food service businesses by French group Lactalis would create a massive dairy company in Australia. Dairy company Lactalis has been given approval by the…
Analysts look for omens as GDT plummets
July, August falls widely expected to follow steep drop of July 2. Global Dairy Trade prices are widely expected to fall during July and August following the 6.9% drop in the GDT price index in the July 2 auction, dairy industry analysts say. A further 5% fall in whole milk powder prices, which is likely to…
Fonterra boss explains sale
Fonterra suppliers have received an insight into the company’s future direction from Oceania managing director René Dedoncker. Mr Dedoncker spoke at Fonterra’s Industry Breakfast in Moama on June 12, which also heard from Farm Source director Matt Watt. Mr Dedoncker said the decision to sell the Australian asset as part of the Oceania deal was a…
Fonterra puts its Australian dairy assets up for sale
Fonterra has put its Australian business, a major supplier of milk, up for sale in a move that has farmers concerned about shrinking competition in the processing sector. The New Zealand-based dairy giant – behind household brands such as Western Star butter, Mainland cheese and Perfect Italiano cheese – has eight manufacturing sites spread across…
Modest increase in GDT price index after latest auction
The average Global Dairy Trade (GDT) price index rose by 1.7% according to latest auction results published today (Tuesday, June 4). There were a total of 164 bidders in the event which saw 17,637MTof product sold. The GDT Price Index now stands at 1,162 today – compared to the previous index figure on May 21 of 1,143. The…