Fonterra has announced the integration of two of its business units, Fonterra Brands New Zealand (FBNZ) and Fonterra Australia, to form Fonterra Oceania.
An internal integration, Fonterra Brands New Zealand and Fonterra Australia are business units within Fonterra, not equated to the ASX and NZX listed Fonterra Co-operative Group.
In a statement, Fonterra said the change would strengthen its trans-Tasman offering in what was an ‘increasingly competitive marketplace’.
FBNZ comprises Fonterra’s consumer brands and foodservice businesses in New Zealand, including brands Anchor, Mainland and Kāpiti, which will continue to utilise our New Zealand farmers’ milk.
The Australian milk pool will continue to provide the milk solids for its Australian brands and ingredients.
The move follows multiple challenges in the dairy sector. Recently, the industry has seen Synlait revise its FY24 forecast to a loss, while Saputo has moved to consolidate 11 plants to 6 this year, following a $197m non-cash goodwill impairment against its Australian business, and Bega has announced the closure of its Betta Milk Burnie factory, consolidating to its Lenah Valley site.
Additionally, in its latest Australian Dairy Sector Outlook, Rabobank reported that Australia’s export volumes had fallen sharply in recent years, while imports had spiked.
The integration of FBNZ and Fonterra Australia will be effective from 1 May 2024 with René Dedoncker to lead the new Fonterra Oceania team.
Dedoncker has extensive experience from across the co-op, having held several global leadership positions before taking the reins of the Australian business in 2017.
