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.
Chief executive Theo Spierings says Warrnambool Cheese and Butter, now owned by Canadian processor Saputo, was providing stiff competition.
A farmer shareholder at Friday's special meeting asked Fonterra to confirm if it was losing milk suppliers in Australia.
Spierings says Fonterra is active in three regions of Australia; Tasmania, eastern, western and northern Victoria.
He says western Victoria is a challenge.
Spierings says Fonterra needs more milk in Australia and will be strongly fighting for more milk.
The co-op's new plant at Stanhope is bigger than the one it replaces and will need more milk.
Spierings noted that Fonterra has lowered its farmgate milk price in Australia and this would lead to some suppliers leaving.
