Fonterra’s Australian assets are considerable, including the iconic Western Star butter brand and the country’s largest cheese plant in Stanhope, Victoria. Although Fonterra has emphasized that no decision has been made, the possibility of offloading parts of its portfolio has attracted the attention of local players like Bega, which already has a strong dairy footprint following its 2020 acquisition of Lion Dairy & Drinks.

The interest from Bega comes as the company seeks to bolster its domestic dairy processing and supply chain capabilities. Findlay noted Bega would approach any opportunity with a focus on strategic alignment and shareholder value. While he stopped short of confirming a formal bid, he emphasized the company’s disciplined investment strategy and its ongoing interest in consolidation opportunities in the Australian dairy sector.

Fonterra’s review follows a broader shift in its global strategy, where it aims to focus more tightly on its core New Zealand operations. The cooperative has reiterated its commitment to maximizing value for shareholders and ensuring long-term sustainability. Industry analysts suggest that any divestment could significantly reshape the competitive landscape of Australian dairy, with potential buyers including local processors and international investors.