increase font size
Fonterra has used the proceeds of the Tip Top sale to help reduce debt levels.
Fonterra chairman John Monaghan says Tip Top’s new owner, Froneri is doing a great job looking after its former employees.
He told the co-op’s annual meeting in Invercargill today that selling Tip Top wasn’t easy.
“We knew it wouldn’t be a popular decision with some of you, but it was the right call.
“Was it an iconic business? Yes. Was it on strategy and a key part of our future? Definitely not.
“Once we took the emotion out of the process, making that call was easy: we divested it as a mature asset for a great price.”
Monaghan says Froneri has retained all former Fonterra employees, who have kept their jobs as part of the deal.
Fonterra has used the proceeds to help reduce debt levels and give it more options for the future.
It has sold its stake in Venezuelan consumer joint venture, Corporacion Inlaca, and its 50% share of DFE Pharma – a joint venture with FrieslandCampina.
“We are considering our options for our ownership of our China Farms, Dairy Partners Americas which is our joint venture in Brazil, and have begun the process of sellingdown our 18.8% shareholding in Beingmate.”
OPINION: There is zero chance that someone who joined Fonterra as a lobbyist, then served as a general manager of Fonterra's nutrient management programme, and sat on the board of Export NZ, a division of lobbyist group Business New Zealand, doesn't understand that local butter (and milk and cheese) prices are set by the international commodity price.
Kiwis love their butter, and that's great because New Zealand produces some of the best butter in the world. But when the price of butter goes up, it's tough for some, particularly when many other grocery staples have also gone up and the heat goes on co-operative Fonterra, the country's main butter maker. Here the co-op explains why butter prices are so high right now.
An A$2 billion bid for Fonterra's Oceania business would be great news, according to Forsyth Barr senior analyst, equities, Matt Montgomerie.
The world's largest dairy company may be in pole position to acquire Fonterra's Australian assets.
Over 85% of Fonterra farmer suppliers will be eligible for customer funding up to $1,500 for solutions designed to drive on-farm efficiency gains and reduce emissions intensity.
Fresh produce grower and exporter T&G Global has overturned last year’s dismal performance by reporting a half year net profit of $1.7 million.
One of New Zealand’s largest fertiliser plants could be forced to shut down for four months as uncertainty looms over gas supply.
Federated Farmers North Canterbury president Bex Green says two public meetings held this week should have made it loud and clear that rural families and businesses are concerned about proposed staffing changes at NZ Police.
The Environmental Protection Authority (EPA) is consulting on a proposal to ban weedkillers containing chlorthal-dimethyl (DCPA).
August 6 marks Farm Worker Appreciation Day, a moment to recognise the dedication and hard mahi of dairy farm workers across Aotearoa - and DairyNZ is taking the opportunity to celebrate the skilled teams working on its two research farms.
OPINION: The Government has been seeking industry feedback on its proposed amendments to a range of Resource Management Act (RMA) national direction instruments.
OPINION: Sydney has a $12 million milk disposal problem.
OPINION: Canterbury milk processor Synlait's recovery seems to have hit another snag.
