It comes two years after the New Zealand co-operative expanded its Australian yoghurt operations, buying bankrupt Tasmanian yoghurt brand, Tamar Valley, and saving 170 jobs.
Fonterra will offload the yoghurt business, which includes the Tamar Valley and Ski brands, to Italian dairy giant Parmalat. Details of the transaction are confidential, a Fonterra spokeswoman said.
The co-operative’s chief executive Theo Spierings said the sale was part of a «clear strategic plan to transform the Australian business to deliver stronger returns to farmer shareholders and unit holders».
«We are focusing on areas where we can win in a highly competitive market, and that means optimising our product mix and streamlining operations to match, and investing in higher value add products that will deliver the best returns for our farmer shareholders and unit holders,» Mr Spierings said in a statement.
«Australia is our largest milk pool outside New Zealand, and is an integral part of our multi-hub strategy. Our Australian operations have particular ingredient strengths in cheese, whey and nutritionals, complemented by our strong consumer and foodservice businesses. As a key part of our multi-hub strategy, we are matching these strengths with the opportunities across our 100 markets.»
Earlier this month Fonterra injected $120 million into rebuilding its cheese factory at Stanhope in northern Victoria. The new plant will be able to produce 50 per cent more cheese, or 45,000 tonnes, and is expected to be completed in 2017.
In November it also sold its strategic 9 per cent stake in Bega Cheese for $74 million to fund growth in other parts of the business. The sale of its shares, however, did not change Fonterra’s commercial relationship with Bega, which includes a licence on the Bega brand and supply contract for cheese.
Growth plans, meanwhile, have included a multimillion deal with Bellamy’s Organic to manufacture the Tasmanian company’s brand of infant formula at Fonterra’s factory at Darnum in eastern Victoria.
Fonterra managing director for Oceania Judith Swales said the sale of the yoghurt business was «a decisive step to lock in our competitive position in the Australian consumer market».
«Divesting the yoghurt and dairy desserts business will allow us to focus on what we do best so we can continue delivering a competitive milk price to our suppliers, benefits to our customers, innovative dairy foods to our consumers, and improved returns to our farmer shareholders and unit holders,» Ms Swales said.
«We will continue investing in programs an innovation that supports our market-leading brands in key retail categories, including Western Star butter and Perfect Italiano, Mainland and Bega cheeses, Anchor cream and fresh milk.
«Australia is our largest milk pool outside New Zealand, and is an integral part of our multi-hub strategy. Our Australian operations have particular ingredient strengths in cheese, whey and nutritionals, complemented by our strong consumer and foodservice businesses. As a key part of our multi-hub strategy, we are matching these strengths with the opportunities across our 100 markets.»
Earlier this month Fonterra injected $120 million into rebuilding its cheese factory at Stanhope in northern Victoria. The new plant will be able to produce 50 per cent more cheese, or 45,000 tonnes, and is expected to be completed in 2017.
In November it also sold its strategic 9 per cent stake in Bega Cheese for $74 million to fund growth in other parts of the business. The sale of its shares, however, did not change Fonterra’s commercial relationship with Bega, which includes a licence on the Bega brand and supply contract for cheese.
Growth plans, meanwhile, have included a multimillion deal with Bellamy’s Organic to manufacture the Tasmanian company’s brand of infant formula at Fonterra’s factory at Darnum in eastern Victoria.
Fonterra managing director for Oceania Judith Swales said the sale of the yoghurt business was «a decisive step to lock in our competitive position in the Australian consumer market».
«Divesting the yoghurt and dairy desserts business will allow us to focus on what we do best so we can continue delivering a competitive milk price to our suppliers, benefits to our customers, innovative dairy foods to our consumers, and improved returns to our farmer shareholders and unit holders,» Ms Swales said.
«We will continue investing in programs an innovation that supports our market-leading brands in key retail categories, including Western Star butter and Perfect Italiano, Mainland and Bega cheeses, Anchor cream and fresh milk.
Source: Sydney Morning Herald