Lactalis in front to acquire Fonterra’s Australian dairy assets after ACCC clearance
The world's largest dairy company may be in pole position to acquire Fonterra's Australian assets.
New Fonterra Shareholders Council Ian Brown has signalled support for TAF (trading among farmers).
Brown replaced Simon Couper, who resigned yesterday saying TAF could not guarantee 100% ownership and control.
Brown says the council has worked alongside the board of directors and the board's capital structure committee for the past two years developing the TAF concept for implementation.
"The council has been deeply involved at all stages and has also conducted its own due diligence process with independent advisors involved," says Brown.
Earlier this week Fonterra's board gave its qualified view that the first four pre-conditions for the launch of TAF would be met, subject mainly to legislative changes and regulatory consents and confirmations. The fifth pre-condition revolves around the Shareholders Council providing its majority support.
Brown says the board needs to satisfy the council that TAF will be implemented in substantially the same manner as set out in the TAF blueprint.
"The board will provide to the council a final report showing how the pre-conditions have been met - prior to the board and the council formally resolving that TAF be implemented, which is likely to take place in July."
Brown says that throughout the deliberations during the past two years, one of the most important considerations has been the ultimate size of the Fonterra Shareholders Fund and how this might be structured to best protect the co-op for future generations.
"As a result of these discussions considerable emphasis has been placed on the terms of the Fonterra Shareholders' fund risk management policy which is described in the blueprint, he says.
"The council is pleased that the board has agreed to recommend to shareholders that they enshrine this policy in Fonterra's constitution."
New Zealand milk production is off to a strong start, with the first month of the 2025/26 dairy season recording a whopping 17.8% jump in milk production, compared to the previous season.
With adverse weather set to rain down on the Top of the South, the Bay of Plenty and parts of Northland, Agriculture Minister Todd McClay says farmers, foresters, and growers need to prepare for possible challenges.
Keep up with innovation and e-commerce in China or risk losing market share. That was the message delivered at the China Business Summit in Auckland this month.
Meat Industry Association (MIA) independent chair Nathan Guy says getting meat processors involved has been a shot in the arm for the sector's key marketing initiative into China, Taste Pure Nature.
Listed carpet manufacturer, Bremworth is undertaking a $6 million expansion at its Napier plant more than two years after the site was heavily damaged by Cyclone Gabrielle.
Federated Farmers is vowing to keep the big banks accountable for their actions and to continue pushing for meaningful change in the rural lending sector.
OPINION: Will synthetic milk derail NZ's economy?
OPINION: According to media reports, the eye-watering price of butter has prompted Finance Minister Nicola Willis to ask for a…