Fonterra has signed a sale agreement stating that it intends to sell its Australian yogurt and dairy desserts business to Parmalat Australia Pty Ltd. for an undisclosed amount, according to a statement on its website. The divestiture is part of Fonterra’s plan to restructure through the sale of some businesses and the expansion or launching of others as the group faces increased competition and pressured margins in Australia.

 

Under this plan, Fonterra has sold its nine percent interest in Bega Cheese Ltd., launched its new Anchor brand in Australia, and is also planning to upgrade its facility in Stanhope, Victoria to transform it into a state-of-the-art cheese plant, increasing capacity at the site by 50%, reports Reuters. In a statement, Fonterra also states that it has joined with Bellamy’s Australia Ltd. and China’s Beingmate Baby and Child Food Company Ltd. in deals that will support production volume at Fonterra Australia, and that it is constructing a multi-million dollar beverages plant at its Cobden facility in Victoria.

 

The sale to Parmalat will include manufacturing sites at Tamar Valley and Echuca, as well as Fonterra’s Australian yogurt and dairy dessert brands.

 

“Australia is our largest milk pool outside New Zealand, and is an integral part of our multi-hub strategy,” said Fonterra chief executive, Theo Spierings, in a company statement. “Our Australian operations have particular ingredient strengths in cheese, whey and nutritionals, complemented by our strong consumer and foodservice businesses. As a key part of our multi-hub strategy, we are matching these strengths with the opportunities across our 100 markets.”

 

All Fonterra employees at the Tamar Valley and Echuca site, and with the group’s yogurt and dairy dessert businesses have been offered employment with Parmalat. The deal is conditional upon receiving all pertinent regulatory approvals and is scheduled to close in the first half of 2016.