United Dairy Farmers of Victoria Call for Clarity on Fonterra Australia Sale
Source: dairynews.today
Fonterra's potential exit from the Australian market raises concerns among farmers, prompting calls for regulatory scrutiny.
The United Dairy Farmers of Victoria are urging Australia's competition watchdog to closely examine the potential sale of Fonterra's Australian assets as the New Zealand-based processor considers exiting the market.
This move could net Fonterra at least $NZ2 billion and involves the sale of eight manufacturing sites across Victoria and Tasmania, including popular brands like Western Star and Perfect Italiano. "Competition between processors is critical for the future of farming," stated Bernie Free, president of the United Dairyfarmers of Victoria, highlighting concerns about market consolidation and the potential impact on farm gate competitiveness.
The decision follows Fonterra's strategy to pursue both a trade sale and an IPO for divestment, with Anne Templeman-Jones named as chair-elect of the audit and risk committee to oversee the process.
This move could net Fonterra at least $NZ2 billion and involves the sale of eight manufacturing sites across Victoria and Tasmania, including popular brands like Western Star and Perfect Italiano. "Competition between processors is critical for the future of farming," stated Bernie Free, president of the United Dairyfarmers of Victoria, highlighting concerns about market consolidation and the potential impact on farm gate competitiveness.
The decision follows Fonterra's strategy to pursue both a trade sale and an IPO for divestment, with Anne Templeman-Jones named as chair-elect of the audit and risk committee to oversee the process.
