Fonterra Australia has moved to reassure its suppliers that any sale of the Australian business would include a requirement for the buyer to honour milk supply agreements.
Fonterra Oceania managing director René Dedoncker said in a statement the company was committed to continuing to operate as normal, without disruption.
“We understand that this is an important time for many Australian farmers as they consider their milk supply options,’ Mr Dedoncker said.
“We would like to assure our farmers, that if a divestment was to go ahead, we intend to include all existing milk supply contracts that are in place at the time of sale.
“These contracts are vital to our business. Any purchaser of the business would be obliged to comply with the terms of agreements until expiry of the term of the agreement.”
The Fonterra Co-operative Group expects any decision on divestment would take at least 12 to 18 months to finalise.
Fonterra in Australia is committed to continuing to operate as normal, including working with our farmer suppliers, continuing to produce and deliver dairy products for consumers and customers, and supporting the communities in which we operate without disruption.
Mr Dedoncker is expected to attend a suppliers meeting at Moama on Wednesday, June 12.
He promised to keep suppliers and the community informed.
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