Fonterra to Sell Australian Assets

Kiwi dairy supplier Fonterra Cooperative Group is planning to exit Australia as it explores full or partial divestment options for its global consumer business and integrated businesses Fonterra Oceania and Fonterra Sri Lanka. The divestment plan disclosure came only three months after Fonterra announced it would merge its Fonterra Brands New Zealand and Fonterra Australia to form Fonterra Oceania. The cooperative said the divestment is part of its change in strategic direction to instead focus on being a B2B (business to business) dairy nutrition provider through its ingredients and food service channel, where it expects to generate further value. “We have conducted a strategic review which has reinforced the role of our core business. This is working alongside farmers to collect a sustainable supply of milk and efficiently manufacture products valued by customers, to deliver strong returns to farmer shareholders and unit holders,” Fonterra Chairman Peter McBride said....