Sector News

Fonterra sells its stake in Bega Cheese

November 2, 2015
Food & Drink

New Zealand dairy processor Fonterra has sold one of its noncore assets to lower their overall borrowings after it offloaded its 9% shareholding in the Australian co-op Bega Cheese for AUS$74m (€48m).

The holding, which was bought in 2013, was sold in order to free up capital to invest in higher-value dairy product.

The sale will not change Fonterra’s commercial relationship with the cheese company. Bega Cheese cuts and wraps cheese, and uses the brand for Fonterra in Australia under a franchise agreement.

Professor Jacqueline Rowarth of the University of Waikato said the sale wasn’t surprising because Fonterra paid about $500m (€310m) in interest and the cheese company wasn’t making money for the co-op.

The decision to sell the stake followed a shareholder vote at Bega Cheese’s AGM to increase the cap to 15% for individual shareholding in the co-op.

By John Boylan

Source: Irish Farmers Journal

comments closed

Related News

December 5, 2021

Tetra Pak dairy manager identifies environmental health as key industry driver in COVID-19 age

Food & Drink

Environmental sustainability and net-zero emissions targets are the key change drivers in dairy packaging and processing right now, according to Bengt Eliasson, category manager for dairy ambient at Tetra Pak. In this wide-ranging interview with PackagingInsights, Eliasson discusses the Swedish-Swiss food packaging and processing giant’s latest low-carbon circular packaging and processing equipment technologies.

December 5, 2021

Chr. Hansen’s fermentation-enabled bioprotective FreshQ solution scores innovation award

Food & Drink

A panel of industry experts selected Chr. Hansen’s FreshQ concept at this year’s Fi Europe Innovation Awards in Frankfurt, Germany. The Food Tech Innovation Award was presented to the company’s range of next-generation food cultures, which are pegged as a “game-changer in terms of low impact on post-acidification” in fermented dairy.

December 5, 2021

China sets formal standard for businesses to use cage-free eggs

Food & Drink

In a move to scale cage-free egg regulations to market behest, the China Chain Store and Franchise Association (CCFA) and the China Animal Health and Food Safety Alliance (CAFA) have set a formal standard to define which eggs and egg products are to be marketed as cage-free.

Send this to a friend