Fonterra unveils divestment plan
Fonterra is exploring full or partial divestment options for its global Consumer business, as well as its integrated businesses Fonterra Oceania and Fonterra Sri Lanka.
Bidders are lining up for beleaguered Australian dairy co-op Murray Goulburn.
Fonterra has been named by Australian media as one of the bidders; others include A2 Milk and several Chinese dairy players.
The co-op, Australia’s largest processor of milk, is in strife following the sharp drop in dairy prices over the past two years; the co-op was forced to claw back milk payout from farmers, triggering an exodus of suppliers.
Recently it announced an after-tax loss for 2016-17 of A$370 million.
MG has told farmer shareholders that all options are on the table as part of a strategic review underway.
“There is no pre-determined outcome to the strategic review and all options are on the table,’ it says.
MG says since announcing the review, MG and its financial advisor have received a range of proposals from third parties. “It is the duty of MG’s directors to consider whether any bona fide propositions tabled are in the best interest of MG’s shareholders.
“The board has asked our advisor to now review any formal proposals received to determine how they might add value to MG’s suppliers, shareholders, and unitholders.”
MG says any potential bidder’s ability to pay higher farmgate prices, access capital for future developments and views on its co-op principles will be crucial for its shareholders.
Fonterra has been approached for comment.
South Waikato farm manager Ben Purua’s amazing transformation from gang life to milking cows was rewarded with the Ahuwhenua Young Maori Farmer award last night.
Bankers have been making record profits in the last few years, but those aren’t the only records they’ve been breaking, says Federated Farmers vice president Richard McIntyre.
The 2023-24 season has been a roller coaster ride for Waikato dairy farmers, according to Federated Farmers dairy section chair, Mathew Zonderop.
Ministry for Primary Industries (MPI) director general Ray Smith says job cuts announced this morning will not impact the way the Ministry is organised or merge business units.
Scales Corporation is acquiring a number of orchard assets from Bostock Group.
Family and solidarity shone through at the 75 years of Ferdon sale in Otorohanga last month.