Revamped Fonterra to be ‘more capital-efficient’
Fonterra chair Peter McBride says the divestment of Mainland Group is their last significant asset sale and signals the end of structural changes.
In a post on X, formerly Twitter, Peters described the decision as “utter madness and economic self-sabotage”.
“This is an outrageous short-sighted sugar hit that is just giving away New Zealand’s added value to a company from a major EU country. There is now no long term security for New Zealand’s farmers.”
At a special general meeting on Thursday, 88.5% of voting farmer shareholders approved the $4.22 billion sale of the co-op’s consumer and related businesses to Lactalis.
The sale includes iconic consumer brands like Mainland, Anchor and Kapiti.
Peters, who had earlier urged Fonterra farmers to vote against the deal, wasn’t impressed with the outcome.
He claims that three years after this deal starts, Lactalis can begin the three-year notice to terminate the milk supply to these brands.
“Six years is meaningless for a long-term exporter. When it’s over, it really is over.
“Meanwhile, Lactalis secures ten years of raw milk for its own consumer brands. It is astonishing that business commentators do not see the irony of this.”
Peters has also been critical of Fonterra leadership, claiming that they weren’t upfront with NZers from the beginning about the deal.
