Deal struck to sell Fonterra

Tasmanian farmers currently supplying Fonterra will still have contracts honoured if shareholders agree to sell the largest consumer foods business in Australasia to French dairy giant Lactalis for $3.5 billion.

Fonterra’s decision to exit Australia has led to fierce bidding from global players in the milk industry including those from Japan and the Netherlands, however the French have struck a deal that could climb by an additional $350 million if Bega licenses in Australia (owned by Fonterra) are included.

While the sale is still subject to approval from Fonterra’s farmer shareholders and regulatory bodies, the Australian Competition and Consumer Commission (ACCC) has given informal clearance, indicating no significant competition concerns between Lactalis and Fonterra.

The sale covers Mainland, Anchor butter, Kapiti and Anlene brands and foodservice and ingredients businesses in Oceania, Sri Lanka, the Middle East, and Africa.

Shareholder voting is expected in late October 2025, with closure anticipated in the first half of 2026.
Fonterra produces a range of cheddar cheese and whey powder at its Wynyard plant and butters, spreads and specialised long-life products at its Spreyton plant, including the award-winning Duck River premium butter.

Fonterra collects milk from around 300 Tasmania farmers.

Lactalis has one processing plant at Invermay, Launceston, with the Tamar Valley Dairy brand.