In New Zealand, the Fonterra Co-operative Council has supported a USD 1.83 billion valuation of Fonterra’s consumer business. This support comes as the dairy giant prepares for a significant portfolio reshuffle, including the planned divestment of Fonterra’s consumer division, Fonterra Oceania, and Fonterra Sri Lanka. The move reflects a sharpened focus on Fonterra’s core business and value return for its shareholders.
The Fonterra Co-operative Council, which represents the interests of Fonterra’s farmer-owners, has formally backed an independent USD 1.83 billion valuation for the company’s consumer business. Fonterra is one of New Zealand’s largest multinational dairy companies and operates as a global dairy co-operative owned by 9,000 farmers.
The announcement was made by John Stevenson, Chair of the Co-operative Council, during the Council’s annual meeting held in New Plymouth. This endorsement comes on the heels of Fonterra’s confirmation earlier this week of its intention to sell its consumer division, along with its operations in Oceania and Sri Lanka.
Fonterra’s decision to divest major parts of its business aligns with its broader strategy to simplify operations and refocus on high-performing core areas such as ingredients and foodservice. The Co-operative Council’s support signals internal alignment on maximizing value for shareholders and realigning the company’s strategic trajectory.
According to the Council, the USD 1.83 billion valuation serves as a benchmark that reflects the division’s market value and the opportunity to return meaningful capital to shareholders. Analysts and investors are now closely watching Fonterra’s next steps, especially in how the asset sale unfolds and what long-term impacts it may have on New Zealand’s competitive dairy sector.
This strategic repositioning is seen as a move toward enhanced capital efficiency, future international investment potential, and a more focused operational model within global dairy markets.
