The reform of the Dairy Industry Restructuring Act (DIRA) need not be radical but there will be some changes, Agriculture Minister Damien O’Connor has indicated.
It’s well accepted that Fonterra’s investment in Chinese infant formula company Beingmate has been a dog, and the co-op is expected to dump the rest of its stake in the baby food company quicker than the National Party cut loose Jami-Lee Ross. Also expected to go are its poorly performing farms in China.
The Hound understands Fonterra is also looking at quitting its ice cream company Tip Top and is believed to be weighing up a sale of its South American operations.
In South America, media reports estimate Tip Top could be worth about $400 million, while the sale of Fonterra’s South American operation could reap the dairy co-operative $1 billion.