Community
12 June, 2024
Fonterra meets with suppliers
FONTERRA Australia held three meetings across the south west last week, with more than 200 farmers and key regional stakeholders involved.
Last month, the New Zealand based Fonterra Co-operative Group announced it was exploring options to potentially divest all or some of its global consumer business, including the Fonterra business that operates in Australia.
Fonterra Oceania managing director René Dedoncker said the Australian business was performing well, and recently completed an integration with Fonterra’s brands business in New Zealand to form Fonterra Oceania.
“It is our belief that the Fonterra Oceania business will strengthen our presence in Australia, New Zealand and across Oceania,” he said.
“At this stage, Fonterra Co-operative Group is exploring potential divestment options. Any decision would take at least 12 to 18 months to finalise.”
Mr Dedoncker said Fonterra in Australia was committed to continuing to operate as normal, including working with its farmer suppliers, continuing to produce and deliver dairy products for consumers and customers, and supporting the communities in which they operate without disruption.
“We understand that this is an important time for many Australian farmers as they consider their milk supply options,” he said.
“We would like to assure our farmers that, if a divestment was to go ahead, we intend to include all existing milk supply contracts that are in place at the time of sale.
“These contracts are vital to our business. Any purchaser of the business would be obliged to comply with the terms of agreements until expiry of the term of the agreement.
“We are committed to keeping our people, farmers and community updated as this process progresses and will share any new information as soon as we can.”