Despite the strong farmer backing, the decision has drawn sharp criticism from government officials. New Zealand’s Foreign Minister, Winston Peters, described the agreement as “utter madness”.
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Despite the strong farmer backing, the decision has drawn sharp criticism from government officials. New Zealand’s Foreign Minister, Winston Peters, described the agreement as “utter madness”.
Farmers who own the New Zealand dairy co-operative Fonterra Co‑operative Group voted overwhelmingly in favour of selling its global consumer business, including brands such as Anchor, Mainland and Kapiti, to French dairy giant Lactalis. About 88.5 per cent of votes supported the deal, which values the business at roughly NZ$4.22 billion (US $2.42 billion).
Despite the strong farmer backing, the decision has drawn sharp criticism from government officials. New Zealand’s Foreign Minister, Winston Peters, described the agreement as “utter madness” and warned that it constitutes “economic self-sabotage,” pointing to long-term risks in surrendering iconic national dairy assets.
The co-operative’s leadership argues that by divesting its consumer-facing business, Fonterra will be able to concentrate on areas where it has competitive strength, and reinvest in its high-value ingredients and food-service operations. The deal is expected to close in the first half of 2026, subject to regulatory approvals.
With one of the largest dairy co-operatives in the world effectively shifting its consumer arm abroad, the transaction will have significant implications for New Zealand’s dairy industry, rural economy and brand identity.
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