Thursday, 07 November 2019 14:16

Selling Tip Top wasn’t easy — Fonterra

Written by  Sudesh Kissun
Fonterra has used the proceeds of the Tip Top sale to help reduce debt levels. Fonterra has used the proceeds of the Tip Top sale to help reduce debt levels.

Fonterra chairman John Monaghan says Tip Top’s new owner, Froneri is doing a great job looking after its former employees.

He told the co-op’s annual meeting in Invercargill today that selling Tip Top wasn’t easy.

“We knew it wouldn’t be a popular decision with some of you, but it was the right call.

“Was it an iconic business? Yes. Was it on strategy and a key part of our future? Definitely not. 

“Once we took the emotion out of the process, making that call was easy: we divested it as a mature asset for a great price.”

Monaghan says Froneri has retained all former Fonterra employees, who have kept their jobs as part of the deal.

Fonterra has used the proceeds to help reduce debt levels and give it more options for the future. 

It has sold its stake in Venezuelan consumer joint venture, Corporacion Inlaca, and its 50% share of DFE Pharma – a joint venture with FrieslandCampina. 

“We are considering our options for our ownership of our China Farms, Dairy Partners Americas which is our joint venture in Brazil, and have begun the process of sellingdown our 18.8% shareholding in Beingmate.”

More like this

Two re-elected to co-op

Re-elected Fonterra directors Andy Macfarlane and Donna Smit are looking forward to another three years on the board.

» The RNG Weather Report


No threat to farming from forestry

OPINION: There’s some agitation out there at the moment about farming being under threat from forestry. Much of what’s circulating is based on misinformation so it’s time to lay out the facts.


Women’s stories inspire many

Storytelling will help attract, retain and inspire the next generation in dairy farming, says Jules Benton, Dairy Women’s Network chief executive.

Pride is making a big comeback

Pride is returning to the dairy industry, says the new chair of Dairy Women’s Network, Karen Forlong, a Central Plateau farmer.

» The RNG Weather Report

» Latest Print Issues Online

Milking It

Angry as usual

The usual culprits are angry at hearing last week that the Government and the agri sector will work together to…

Vladimir the dairy farmer

Russian President Vladimir Putin is a master tactician in taking advantage of international conflicts.

» Connect with Dairy News