Fonterra Farmers Seek Answers on Lactalis Deal
Sourse: dairynews.today
Fonterra farmers are questioning the co-op's proposed $3.8 billion sale to Lactalis, seeking detailed implications on their business.
As the co-op prepares for a pivotal vote on selling its global consumer businesses to the French giant Lactalis, Fonterra farmers are actively questioning the future of their cooperative and the fate of iconic brands. The Fonterra Co-operative Council chair, John Stevenson, describes the $3.8 billion proposal as strong but acknowledges the need for farmer approval. While the board sees this as the highest-value option, there is concern over the divestment's impact on the cooperative's future strategy and profitability.
Farmers are also considering the emotional loss of co-owned brands like Anchor and Mainland. The potential tax-free capital return of $2.00 per share is enticing, yet long-term effects remain a hot debate topic. The co-op promises a continued supply agreement with Lactalis, ensuring New Zealand milk in brands like Anchor. However, a strong farmer mandate is needed to finalize the deal. The decision, expected by late October or early November, could redefine strategic alignments within the global dairy market.
Farmers are also considering the emotional loss of co-owned brands like Anchor and Mainland. The potential tax-free capital return of $2.00 per share is enticing, yet long-term effects remain a hot debate topic. The co-op promises a continued supply agreement with Lactalis, ensuring New Zealand milk in brands like Anchor. However, a strong farmer mandate is needed to finalize the deal. The decision, expected by late October or early November, could redefine strategic alignments within the global dairy market.
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