Friday, 24 September 2021 11:40

Oz farmers could get a slice of Fonterra business

Written by  Sudesh Kissun
Fonterra Australia managing director Renee Dedoncker. Fonterra Australia managing director Renee Dedoncker.

Australian dairy farmers supplying milk to Fonterra could become part-owners of the co-operative’s business across the Tasman.

The co-operative has announced a review of its Australian business as part of a new long-term strategy focusing on New Zealand milk.

The co-op is considering the most appropriate ownership structure for Fonterra Australia. One option includes an IPO, with the intention that the co-op retains a significant stake.

Fonterra Australia Suppliers Council chairman Alan Davenport says he hoped that ownership options could present opportunities to further align supplier interests.

“Farmers are already proud to supply milk for a fantastic stable of local brands, and I am pleased that one of the options under consideration is an IPO of Fonterra Australia.”

Devonport hopes that any change to the ownership structure “builds on the partnership between Fonterra Australia and its farmer suppliers”.

Fonterra Australia managing director René Dedoncker says it would be a great outcome if Australian investors, including staff and the farmers who supply milk, could have the opportunity to participate in the ownership of the business.

Fonterra Australia owns iconic Australian brands such as Western Star, Perfect Italiano and Bega.

“As we explore our options we will be mindful that our customer and farmer relationships are core to our business,” says Dedoncker.

“These key stakeholders can be confident there will be no change in how we engage with them through this period, while an outcome that results in improved access to external capital will enable Fonterra Australia to continue advancing the Australian dairy industry.”

More like this

Shareholders welcome Fonterra revamp

Fonterra's full-year results and strategy refresh has been well received by shareholders says Fonterra Co-operative Council chair James Barron.

Will Aussies buy Fonterra?

A planned public listing of Fonterra’s Australian business will attract investors, including dairy farmers, claims Freshagenda analyst Steve Spencer.


Why should we do more?

OPINION: Managing our dairy sector's impacts inevitably attracts a range of views. Should we do more, less or stay the…

Cattle sale with a difference

Innovation, loss and resilience have brought the Singh family to the point where it is poised to honour its patriarch,…

O'Connor's overseas odyssey

Agriculture Minister Damien O'Connor continued his overseas odyssey in the past week with multiple meetings in the US, Europe and…

Machinery & Products

Protective tint

Now available in New Zealand, Wildcat Static Cling Tint adds a protective layer to the windows of your tractor, harvester…

New owner for stoll

German company Stoll, the well-known manufacturer of tractor front loaders and attachments that claims to be the second largest producer…

Fert spreaders get a revamp

Kuhn has updated its MDS range of fertiliser spreaders, giving farmers more options to upgrade machines as situations change, rather…

Mowers spring into action

With spring upon us, thoughts turn towards shutting up paddocks for conservation and maybe the purchase of new machinery to…

» The RNG Weather Report

» Latest Print Issues Online

Milking It

Feeling the heat

US dairy farmers have a new threat to their business - heat waves.

Class action

The news has gone from bad to worse for a2 Milk - the company Synlait had hitched its wagon to.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter