Fonterra's Strategic Shift: A Return to Core Strengths
Sourse: dairynews.today
Fonterra's decision to sell its consumer brands highlights its focus on core milk processing and away from less profitable segments.
Fonterra’s recent decision to divest from its consumer business, particularly the Mainland Group characterized as "poor-performing" by analysts, marks a strategic realignment towards its core competency: milk processing. Analysts like Matt Montgomerie and Ben Crozier from Forsyth Barr emphasize that this move possible elevates Fonterra as a "much higher-quality business." This transition away from branded consumer products, which have historically lagged in return on capital, underscores Fonterra's aim to strengthen its more robust Foodservice and Ingredients segments. While the Anchor brand sparks national pride among Kiwis, financial stakeholders see this shift as an essential step in refining Fonterra’s business focus.
Key News of the Week
16.09.2025
Rethinking Global Milk Production Figures: A Critical Perspective
In the recent article “The Dairy Map of the World 2025: Who Feeds the Planet?”, it was noted that global milk production reached around 950 million tons in 2024, with India and Pakistan driving much of the 3% growth in Asia. At the same time, global dairy trade remains uneven: while some countries expand their export positions, others remain focused on domestic consumption.
