Wednesday, 09 January 2019 15:15

Fonterra to offload livestock business

Written by 

Fonterra will offload its Farm Source livestock business to family-owned business Carrfields Livestock on March 1.


Richard Allen, Farm Source stores director, says the decision to sell was made in the context of a larger review underway within the co-op.


“In the context of the review of the co-op’s assets and investments, we have made the decision to sell the livestock division to Carrfields Livestock. This will better serve the livestock team and the farms they service.


“While Farm Source’s livestock division has contributed positive returns since inception, we believe the investment required to maintain and grow this division can be more effectively targeted towards improving core areas of the Farm Source business,” says Allen.


Farm Source, and previously as RD1, has had a livestock division since 2005. Today, it has about 25 agents supporting farmers across the country. In 2017, Farm Source Livestock facilitated the purchase of almost 200,000 animals.


Craig Carr, Carrfields Group managing director, says this acquisition is both exciting and a strategic opportunity for Carrfields Livestock to fill gaps in their current national network.


“This acquisition will take the Carrfields Livestock team to over 150 livestock agents spread right across the country. This strategic partnership will offer Farm Source clients and Fonterra farmer owners access to a nationwide agent and sale yard network provided by a New Zealand family-owned business,” says Carr.

 

More like this

All eyes on NZ milk supply

All eyes are on milk production in New Zealand and its impact on global dairy prices in the coming months.

"Our" business?

OPINION: One particular bone the Hound has been gnawing on for years now is how the chattering classes want it both ways when it comes to the success of NZ's dairy industry.

Farmers' call

OPINION: Fonterra's $4.22 billion consumer business sale to Lactalis is ruffling a few feathers outside the dairy industry.

Wasted energy

OPINION: Finance Minister Nicola Willis could have saved her staff and MBIE time and effort over ‘buttergate’ recently by not playing politics with butter prices in the first place.

Featured

All eyes on NZ milk supply

All eyes are on milk production in New Zealand and its impact on global dairy prices in the coming months.

National

Machinery & Products

JDLink Boost for NZ farms

Connectivity is widely recognised as one of the biggest challenges facing farmers, but it is now being overcome through the…

New generation Defender HD11

The all-new 2026 Can-Am Defender HD11 looks likely to raise the bar in the highly competitive side-by-side category.

» Latest Print Issues Online

Milking It

Building trust

OPINION: The war of words between Southland farmers and Environment Southland over winter grazing inspections reflects a deep lack of trust…

No Joy

OPINION: Milking It understands a formal disciplinary process is being conducted by Victoria University of Wellington on what one of…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter