Fonterra Australia Ensures Supplier Stability Amid Potential Sale
Source: The DairyNews
In light of potential divestment talks, Fonterra Australia has moved to calm its suppliers, ensuring that any future sale of its operations would safeguard existing milk supply agreements. René Dedoncker, Managing Director of Fonterra Oceania, emphasized the company's commitment to maintaining business as usual, reassuring that there would be no disruptions in their operations.
"During this critical period for many Australian farmers assessing their milk supply options, we want to provide certainty," Mr. Dedoncker stated. He further assured that, should the divestment proceed, all current milk supply contracts would be honored by any new owner as part of the sale conditions.
"These contracts are integral to our operations. Any buyer would be legally bound to respect these agreements until they naturally conclude," he added.
The divestment process, according to Fonterra Co-operative Group, is expected to take approximately 12 to 18 months to complete. Throughout this period and beyond, Fonterra Australia is dedicated to its ongoing collaboration with farmer suppliers, continuing its dairy production and distribution, and supporting local communities without interruption.
Mr. Dedoncker is slated to discuss these developments further with suppliers at an upcoming meeting in Moama on Wednesday, June 12. He has committed to keeping both suppliers and the broader community regularly informed throughout the process.
"These contracts are integral to our operations. Any buyer would be legally bound to respect these agreements until they naturally conclude," he added.
The divestment process, according to Fonterra Co-operative Group, is expected to take approximately 12 to 18 months to complete. Throughout this period and beyond, Fonterra Australia is dedicated to its ongoing collaboration with farmer suppliers, continuing its dairy production and distribution, and supporting local communities without interruption.
Mr. Dedoncker is slated to discuss these developments further with suppliers at an upcoming meeting in Moama on Wednesday, June 12. He has committed to keeping both suppliers and the broader community regularly informed throughout the process.
