Summarised by Centrist
Fonterra’s 9000-plus shareholder-farmers voted 88% in favour of selling its consumer brands (including Anchor and Mainland) to France’s Lactalis for $4.2b, clearing the 50% threshold.
The co-op says the deal will refocus Fonterra on ingredients and higher-value B2B products, with chair Peter McBride calling it a “strong mandate” and a step toward a simpler, more focused business. ASB estimates proceeds at about $4.5b, implying an average tax-free payout near $392,000 per farmer if completed.
Criticism came from NZ First leader Winston Peters, who called the move “economic self-sabotage” and warned about future milk-supply risk as contractual terms allow Lactalis to give three years’ notice after year three. Supportive industry reactions framed the vote as farmer democracy; Rabobank’s Emma Higgins said the result “green-lights” reshaping the co-op, and Federated Farmers’ Karl Dean said many will reinvest in farming.
Completion depends on regulatory approvals and separating the Mainland Group from Fonterra; the parties target the first half of 2026.
