Damon Mcknight
Fonterra Co-operative Group Limited is a New Zealand multinational publicly traded dairy cooperative owned by New Zealand farmers. The company is responsible for approximately 30% of the world's dairy exports, generating a revenue of over NZ $22 billion. While Fonterra is not Australian-owned, it has a significant presence in Australia, with eight manufacturing sites across Victoria and Tasmania and well-known brands such as Western Star, Mainland, and Perfect Italiano. The company collects milk from Australian farmers and produces dairy products for the Australian market, employing about 1600 people.
| Characteristics | Values |
|---|---|
| Ownership | Fonterra is a New Zealand multinational publicly traded dairy cooperative owned by New Zealand farmers. |
| Headquarters | Fonterra is headquartered in New Zealand. |
| Leadership | The CEO of Fonterra Co-op Group is Miles Hurrell, and the Chairman is Peter McBride. |
| Business Structure | Fonterra is a cooperative with shares owned by farmers. |
| Revenue | Fonterra generated a total revenue of $20,877,423,000 in 2024. |
| Employees | Fonterra had 17,993 employees across all subsidiaries in 2024. |
| Brands | Fonterra owns brands such as Western Star, Mainland, Perfect Italiano, Anchor, Fresh 'n Fruity, and more. |
| Manufacturing Sites | Fonterra has eight manufacturing sites across Victoria and Tasmania, Australia. |
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What You'll Learn
Fonterra is a New Zealand multinational dairy cooperative
Fonterra is a publicly traded company, with shares restricted to farmers only. The cooperative is not obliged to issue or redeem shares at a fixed price, allowing farmers to trade shares among themselves at market prices. This provides Fonterra with stable capital, enabling the company to confidently invest in long-term projects.
Fonterra operates in three main areas: Ingredients, Consumer Products, and Foodservices. The Ingredients division involves the manufacture and global marketing of dairy commodities and ingredient products, including milk powders, proteins, fats, cheese, and probiotics. The Consumer Products division produces, markets, and sells value-added retail dairy products in Oceania, Asia, Greater China, and Latin America. The Foodservices division provides branded dairy products, such as creams, beverages, cheese, milk, and butter, to restaurants, cafes, and fast food outlets.
Fonterra has a significant presence in Australia, with eight manufacturing sites across Victoria and Tasmania. The company collects milk from Australian farmers, producing well-known brands such as Western Star butter, Mainland cheese, and Perfect Italiano cheese. In 2024, Fonterra's Australian business was put up for sale, generating concerns among farmers about decreasing competition in the processing sector.
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It is owned by New Zealand farmers, not Australians
Fonterra Co-operative Group Limited is a New Zealand multinational publicly traded dairy cooperative owned by New Zealand farmers. It is not Australian-owned. The company is responsible for approximately 30% of the world's dairy exports, with revenue exceeding NZ $22 billion, making it New Zealand's largest company. It is the sixth-largest dairy company in the world and the largest in the Southern Hemisphere.
Fonterra was established in October 2001 following the merger of New Zealand's two largest dairy cooperatives, New Zealand Dairy Group (NZDG) and Kiwi Cooperative Dairies, with the New Zealand Dairy Board. The name Fonterra comes from the Latin "fons de terra," meaning "spring from the land." The company's formation aimed to consolidate New Zealand's dairy industry, which had been largely cooperative since the establishment of the first dairy cooperative in Otago in 1871.
Fonterra's shares are owned by its farmer shareholders, and the company has implemented a unique capital structure to maintain 100% farmer control and ownership. This structure allows farmers to buy or sell shares among themselves at market prices through a farmer-only share trading market. As a result, Fonterra shares are permanent capital, providing the cooperative with stability and the confidence to invest in long-term projects.
While Fonterra has a significant presence in Australia, with eight manufacturing sites across Victoria and Tasmania, it is not Australian-owned. The company collects milk from Australian farmers and produces dairy products for the Australian market, employing about 1,600 people and collecting about 1.4 billion litres of milk annually. However, the company's headquarters and primary ownership remain in New Zealand.
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Fonterra shares are valued with share ownership restricted to farmers
Fonterra Co-operative Group Limited is a New Zealand multinational publicly traded dairy cooperative owned by New Zealand farmers. It is responsible for approximately 30% of the world's dairy exports, with revenue exceeding NZ $22 billion, making it New Zealand's largest company.
Fonterra was established in October 2001 following the merger of the country's two largest dairy cooperatives, New Zealand Dairy Group (NZDG) and Kiwi Cooperative Dairies, with the New Zealand Dairy Board. The company issues Cooperative Shares to farmers in proportion to their supply. The value of these shares is set annually by an independent valuer.
In 2008, the board proposed a three-step process to revamp Fonterra's capital structure, which included abandoning plans for a public listing of shares and retaining 100% farmer control and ownership. This new structure aimed to prevent large sums of money from fluctuating in Fonterra's balance sheet due to changes in milk production. Previously, farmers could redeem shares back to the cooperative if their milk production decreased, and the cooperative was required to buy them back.
The second step in the proposed changes was to modify how Fonterra shares were valued to reflect that share ownership is restricted to farmers only. An independent valuator determined that the restricted market value should be at a 25% discount compared to the freely traded value. The final step, called "Trading Among Farmers," allowed farmers to buy or sell shares among themselves at market prices through a farmer-only share trading market. This change made Fonterra shares permanent capital, providing the cooperative with more stability and confidence to invest in long-term projects.
In June 2010, Fonterra's farmer shareholders voted in favour of the "Trading Among Farmers" proposal, receiving 89% support. This step, along with the establishment of the Fonterra Shareholders' Fund, aimed to manage redemption risk and provide more flexibility for farmers in their level of investment.
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Fonterra has eight manufacturing sites in Australia
Fonterra is a New Zealand-based multinational dairy cooperative owned by New Zealand farmers. It is the country's largest company, responsible for approximately 30% of the world's dairy exports, and is the sixth-largest dairy company in the world. Fonterra was formed in 2001 through the merger of New Zealand's two largest dairy cooperatives and the New Zealand Dairy Board.
Despite being New Zealand-owned, Fonterra has a significant presence in Australia. Notably, the company has eight manufacturing sites across Victoria and Tasmania, where it collects milk from Australian farmers and produces dairy foods for the Australian market. These sites play a crucial role in producing dairy products that generations of Australians have grown up with, including well-known brands such as Perfect Italiano, Mainland, Western Star, and Bega.
Fonterra's Australian manufacturing sites are dedicated to creating a diverse range of dairy products, from award-winning butter and spreads to high-quality cheese and milk powders. The company's Australian operations also extend to providing dairy ingredients to leading food companies worldwide and catering to the foodservice industry's specific needs.
The eight manufacturing sites in Australia contribute to Fonterra's global reach and impact as a leading dairy cooperative. With a focus on collaboration and a commitment to quality, these sites help Fonterra maintain its position as a prominent player in the dairy industry, both in Australia and internationally.
While Fonterra's primary ownership and origins lie in New Zealand, the company's Australian manufacturing sites demonstrate its integration into the Australian dairy landscape and its role in shaping the dairy experiences of Australians.
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$1.18 $1.48
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The company sells dairy ingredients to leading food companies
Fonterra Co-operative Group Limited is a New Zealand multinational publicly traded dairy cooperative owned by New Zealand farmers. It is not Australian-owned. The company is responsible for approximately 30% of the world's dairy exports, generating revenue exceeding NZ $22 billion, making it New Zealand's largest company. It is the sixth-largest dairy company in the world and the largest in the Southern Hemisphere.
Fonterra sells dairy ingredients to leading food companies. The company operates in three main areas: Ingredients and Consumer Products. The Ingredients division involves the manufacture and global marketing of dairy commodities and ingredient products, including trading dairy products on behalf of other manufacturers. Products include milk powders, proteins and fats, as well as cheese and probiotics.
The Consumer and Foodservice division involves the production, marketing and sale of value-added retail dairy products. This division is further divided by geographic region: Oceania, Asia, Greater China, and Latin America. Through this division, Fonterra provides a range of branded dairy products to restaurants, cafes, fast food outlets, and similar businesses. Products include creams, beverages, cheese, milk, and butter. This division also works closely with caterers and chefs to produce more tailored, customised products.
Fonterra's global brand of dairy ingredients is NZMP, which provides world-leading dairy ingredients and expertise to customers. The company also sells dairy ingredients through a dedicated sales channel for the foodservice industry, providing a full range of dairy products specifically designed for commercial kitchens.
In Australia, Fonterra collects milk from Australian farmers, which is then processed into dairy products at eight manufacturing sites across Victoria and Tasmania. The company's Australian dairy products include well-known brands such as Western Star butter, Mainland cheese, Perfect Italiano cheese, and Bega cheese.
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Frequently asked questions
No, Fonterra is a New Zealand-based company. It is a multinational publicly traded dairy cooperative owned by New Zealand farmers.
Fonterra has eight manufacturing sites in Australia, spread across Victoria and Tasmania. The company collects milk from Australian farmers and uses Australian dairy to produce its products.
Fonterra owns several Australian brands, including Perfect Italiano, Mainland, Western Star, and Bega.
