Fonterra farmers approve $4.22bn consumer business sale to Lactalis

Fonterra’s farmer shareholders have approved the sale of its global Consumer and associated businesses, Mainland Group, to Lactalis for $4.22 billion. The resolution passed with 88.47% of total farmer votes in favor at a virtual Special Meeting held on October 30, 2025. This divestment aims to simplify and focus Fonterra's business on its high-value B2B Ingredients and Foodservice channels.

The transaction is expected to complete in the first half of the 2026 calendar year, subject to regulatory approvals and the separation of the Mainland Group business. Fonterra is targeting a tax-free capital return of $2 per share to shareholders and unit holders, equivalent to $3.2 billion, upon completion of the sale, with a further shareholder vote required for this payment.

In October 2025, Fonterra reported a 1.6% decrease in its weighted average product price on the Global Dairy Trade from the previous event, while the quantity sold increased by 6.1%. New Zealand milk production increased by 2.5% in September 2025 compared to the previous year, with Fonterra's New Zealand collections up 2.8% to 179.0 million kgMS for September. The co-operative also announced a $75 million investment to expand butter production at its Clandeboye site.