Fonterra chief executive Miles Hurrell has said that the dairy cooperative could increase its value to farmers as a business-to-business (B2B) dairy nutrition provider.
As part of this, the New Zealand dairy giant could sell all or part of its global consumer business, a portfolio that includes iconic Kiwi brands such as Anchor, Mainland, Kāpiti
and more, with any business unit sales expected to take 12-18 months.
It’s been reported that these brands used about 15% of Fonterra’s total milk solids in the first half of the year which attributed some 19% to underlying profits.
Hurrell says the company sees greater growth in high-performing ingredients and food service channels that give the flexibility required in manufacturing and more.
“This will be enabled by strong relationships with farmers, a flexible manufacturing and supply chain footprint, deeper partnerships with strategic ingredients customers, further investment in our Foodservice channel, continued delivery on our sustainability commitments and investment in innovation,” Hurrell was reported as saying.
Fonterra says that through its ingredients business it was expecting to continue supplying milk to consumers.
