The Australian division produces dairy brands including Western Star butter and Perfect Italiano cheese.
Fonterra chairman Peter McBride said the completion of the sale was a significant milestone which sets the co-operative up for the future.
“With the divestment complete, Fonterra can return capital to its owners and focus on growing further through its core business as a New Zealand farmer-owned global B2B dairy provider,” Mr McBride said.
“Through our high performing ingredients and foodservice businesses, we sell innovative dairy products to customers globally under our NZMP and Anchor Food Professionals brands,” Fonterra CEO Miles Hurrell said.
“We can now focus our resources, R&D spend, and farmers’ capital on continuing to grow these businesses, which generate the greatest return for farmers’ milk.
“The completion of the sale also signals the start of our long-term partnership with Lactalis.
“Lactalis becomes one of our most significant ingredients customers, as we continue to supply milk and other products to the divested businesses.”
The international company, Lactalis, is ranked as the world’s largest dairy processor, operating 250 production sites and employing more than 80,000 people.
The sale comprises:
- Fonterra’s global consumer business and consumer brands, excluding the consumer business in Greater China where Fonterra will continue to own the Anchor brand.
- The integrated foodservice and ingredients business in Oceania.
- The integrated foodservice business in Sri Lanka.
- The Middle East and Africa foodservice business.
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