Fonterra trims board size
Fonterra’s board has been reduced to nine - comprising six farmer-elected and three appointed directors.
Chief executive Miles Hurrell says the co-operative looked at a number of options and decided to maintain full ownership.
“Australia plays an important role in our consumer strategy with a number of common and complementary brands and products and as a destination for our New Zealand milk solids,” he says.
“The business is going well, and it will play a key role in helping us get to our 2030 strategic targets.”
As part of its strategy to 2030, Fonterra plans to return about $1 billion to shareholders and unit holders which anticipated divestments including Soprole and a stake in the Australian business.
“Even though we have decided not to sell a stake in our Australian business, we are still committed to targeting a significant capital return to our shareholders and unit holders,” says Hurrell.
“The amount of any capital return will ultimately be determined on a number of factors, including the successful completion of the divestment programme as well as our ongoing debt and earnings levels.”
Fonterra collects milk from farmers in Victoria and Tasmania and processed it at milk plants in the two states.
The co-operative’s main products in Australia are Western Star butter, Perfect Italiano cheeses and Mainland.
On the sale of Soprole business, Fonterra says it is “making progress”.
