New Zealand Dairy Industry Sees Major Consolidations and Record Deals in 2025

In 2025, New Zealand's dairy sector underwent transformative changes characterized by significant mergers and acquisitions. The year was marked by Fonterra's $4.2 billion sale of its Mainland Group to Lactalis, which is considered one of the largest corporate transactions in New Zealand's history. This deal resulted in $3.2 billion being returned to Fonterra's farmer-shareholders, signifying Fonterra's shift away from domestic chilled dairy to focus more on ingredients and foodservice.

Another notable transaction was Open Country Dairy's acquisition of Miraka. Originally a model Māori-owned exporter, Miraka faced financial difficulties leading to its acquisition in September. This acquisition ensured over $30 million in payments to farmers and concluded with Miraka entering solvent liquidation.

The a2 Milk Company also made strategic moves by acquiring Yashili Pōkeno to enhance its access to the Chinese market while divesting the loss-making Mataura Valley Milk to Open Country Dairy. Additionally, Synlait sold assets to Abbott, and Comvita faced capital challenges, further illustrating the sector's ongoing flux.

Alliance Group, a major player in the meat sector, faced a capital crisis that ended with Dawn Meats, an Irish processor, purchasing a 65% stake in the company for $270 million. This move ended the group's full farmer ownership but stabilized its financial standing.

These developments highlight a year of accelerated consolidation and strategic realignments within New Zealand's agribusiness sector, particularly in dairy and meat processing.