Print this page
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

Easing UK farmers' fears

Fonterra chief executive Miles Hurrell used his first overseas trip in nearly two years to meet UK farming leaders and allay their fears around the looming free trade agreement (FTA).


Tributes to a dairy champion

Fonterra chairman Peter McBride has paid tribute to dairy industry leader John Luxton, who passed away earlier this month.

Dairy tops organic exports

Dairy has been named as New Zealand’s largest organic sector with exports of $153.8 million, up 55% from 2017.

Machinery & Products

Gongs for John Deere

The tractor of the Year 2022 Awards, held at the recent EIMA show in Bologna, handed out a brace of…

Digital pre-start safety checks

According to numbers published by ACC, more than 60 farm-related injuries are reported every day, leaving much room for improvement.

JV for Bucket Test App

Irrigation NZ and global farm management company CropX have established a joint venture agreement for the Bucket Test app.