New Zealand’s dairy cooperative Fonterra confirmed it is selling its Australian operations. Major global and domestic players including Meiji (Japan), FrieslandCampina (Netherlands), Bega (Australia), and Lactalis (France) are vying for the multi-billion-dollar deal, highlighting rising international interest in strategic dairy assets. Lactalis has formally initiated regulatory steps while Bega has publicly reaffirmed its interest, citing alignment with its long-term strategy.
Fonterra, a leading dairy cooperative based in New Zealand, has officially initiated the sale of its Australian business unit, drawing strong interest from international giants and domestic players in the dairy industry. Headquartered in Auckland, Fonterra is known for its global dairy operations spanning milk production, processing, and export. The potential deal is estimated at USD 2 billion.
Among the top contenders are Japan’s Meiji Holdings, Dutch cooperative FrieslandCampina, France’s Lactalis Group, and Australia’s Bega Cheese. Each company brings strong strategic motivations to acquire Fonterra’s premium Australian assets, which are seen as a gateway to increased food security and stronger trade relations in Asia-Pacific.
French dairy leader Lactalis, the world’s largest dairy processor, has already applied for informal merger clearance with the Australian Competition and Consumer Commission (ACCC), signaling serious intent. Meanwhile, Barry Irvin, Executive Chairman of Bega Cheese, headquartered in New South Wales, confirmed their participation, stating that Fonterra’s Australian division aligns naturally with Bega’s expansion goals.
Industry sources also confirm Meiji and FrieslandCampina’s likely bids, though both companies have not publicly declared their interest. According to Scott Briggs of Bridgecape Commodities, the interest from these global players is logical, as the assets provide high-quality, diversified output with strong market access potential.
While concerns about reduced competition have surfaced, particularly from farmer groups, stakeholders like Australian Dairy Farmers president Ben Bennett praised Bega’s ongoing efforts to collaborate with producers.
Fonterra’s preference appears to be a trade sale over an IPO. As geopolitical shifts emphasize food resilience and secure supply chains, international bidders are increasingly viewing Australian dairy assets as crucial to their long-term strategy.
The competitive process is expected to unfold over the coming months, with outcomes that could significantly reshape the dairy landscape across Oceania.
