Thursday, 06 December 2018 10:58

Fire sales?

font size decrease font size increase font size
Print
Email

Your canine crusader hears that Fonterra’s current financial woes could see the dairy co-op dumping many of its key assets.

It’s well accepted that Fonterra’s investment in Chinese infant formula company Beingmate has been a dog, and the co-op is expected to dump the rest of its stake in the baby food company quicker than the National Party cut loose Jami-Lee Ross. Also expected to go are its poorly performing farms in China.

The Hound understands Fonterra is also looking at quitting its ice cream company Tip Top and is believed to be weighing up a sale of its South American operations.

In South America, media reports estimate Tip Top could be worth about $400 million, while the sale of Fonterra’s South American operation could reap the dairy co-operative $1 billion.

Tagged under

More like this

Global supply/demand favours Fonterra

Fonterra says its improved milk price reflects strong global demand relative to supply.

Hard calls to be made on Fonterra assets

Fonterra farmers are emotional but realistic about losing some iconic business units — notably Tip Top, says Fonterra Shareholders Council chairman Duncan Coull.

Light reading

In a follow-up to this old mutt’s piece two issues ago about Fonterra directors getting to grips with the co-op’s financial state and loudly sharing their dismay in the Koru club, another of the Hound’s spies has passed on more news in the ‘Fonterra director watch’ category.