The sale is a deliberate effort to reposition the co-operative, focusing on its core strengths as a world-leading provider of high-value, innovative dairy ingredients and foodservice products. McBride stated that the process has been entirely about strategy and determining what Fonterra can be the best at. By streamlining the business, the co-op can better invest its capital in areas with greater long-term growth potential and create a simpler, more high-performing organization.

The transaction is expected to yield a significant financial return for Fonterra’s farmer-shareholders. The company plans to return $3.2 billion of the sale proceeds to its approximately 8,000 farmer-shareholders, with the remainder used for debt reduction and capital works. The sale is considered a “fantastic result,” with the final price exceeding market expectations, demonstrating the value of the divested assets.

A key element of the deal is a new, long-term strategic partnership between Fonterra and Lactalis. While Fonterra was previously a small ingredient customer for Lactalis, it will now become a major, long-term partner as the French giant expands its reach into Asia and the Pacific. This relationship ensures that New Zealand farmers’ milk will continue to be used in iconic dairy brands, even under new ownership, a crucial factor for the agribusiness supply chain.