Fonterra sells Australian yoghurt and dairy desserts businesses
Updated
Dairy processor Fonterra has entered an agreement to sell its Australian yoghurt and dairy dessert business to Parmalat Australia.
Fonterra says the move is part of a plan to 'return the co-operative's Australian business to strong and sustainable profitability'.
The sale includes manufacturing sites at Tamar Valley and Echuca as well as Fonterra's Australian yoghurt and dairy dessert brands which include Soleil, Tamar Valley Dairy, CalciYum and Connoisseur yoghurt brands.
Chief Executive of Fonterra Theo Spierings said the move was designed to improve shareholder returns.
"We are focusing on areas where we can win in a highly competitive market, and that means optimising our product mix and streamlining operation to match," he said.
Workers in the yogurt and dairy dessert divisions have received offers of employment from the new owner, Parmalat.
Topics: agricultural-prices, agricultural-marketing, dairy-production, melbourne-3000
First posted
