Fonterra’s farmer shareholders have voted overwhelmingly in favour of the sale of the brands like Mainland and Anchor to a French company.
More than 88 percent of the votes cast at a special meeting backed the $4.2 billion sale to French dairy giant Lactalis.
ASB Bank estimated the sale proceeds would ultimately be worth about $4.5b to the economy, with farmer shareholders receiving an average tax-free payout of about $392,000 if the sale went ahead.
The sale to the world’s biggest dairy group, French-based Lactalis, is the final step in Fonterra’s transition to a slimmed-down New Zealand-based supplier of raw ingredients and high-value products to other manufacturers.
That seems like the dumbest decision ever. A perfect example of short term thinking. Go to any country in Europe and they will have a hundred different kinds of cheeses representing every nook and cranny of the country. Each cheese has a story about the climate or the cows or grass or the air or the aging or whatnot and as a result they cost a premium. We just sell the milk powder, they make artisan bespoke cheese and sell it back to us.