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

Related News

April 17, 2021

Ramadan fasting during COVID-19: Experts weigh in on immunity research

Food & Drink

Fasting during the COVID-19 pandemic brings new considerations, but a recent research review from the University of Doha, Qatar, suggests fasting during Ramadan may have a positive impact on immunity strength.

April 17, 2021

Unilever packaging director: E-commerce boom provides opportunities for new refillable packaging formats

Food & Drink

Ahead of the Rethinking Materials Summit (19-20 May), PackagingInsights sits down with Hugo Menilo, Unilever’s global foods packaging director to discuss their explorations in bio-based packaging, advanced recycling, refillable e-commerce solutions and more.

April 17, 2021

Heineken pledges carbon neutrality across value chain by 2040

Food & Drink

The announcement marks the first in a series of refreshed Brew a Better World ambitions, which form part of the company’s new EverGreen growth strategy.

Send this to a friend