Fonterra announces Australian review

Posted by Isobel Drake on 30th April 2009

Dairy group Fonterra has announced a strategic review of their liquid milk businesses in Australia. The news comes as they report the sale of their Australian ice cream business.

“(The review) will seek to maximise the value and sustainability of its non-core regional liquid milk businesses in Australia,” the company said. “Fonterra places a high value on these operations, however its primary focus is national leadership across Australia in its priority categories of cheese, spreads, yoghurts and dairy desserts.”

Fonterra is a minor player in an Australian liquid milk sector that has seen private label growth soar over the last decade. Dairy Australia last year reported that the supermarket share of private label was above 55%, markedly above the 25% levels seen in 1999/2000 and posing a significant threat to branded milk manufacturers.