Fonterra Australia managing director René Dedoncker said he welcomed the ownership review.
“(This) is an important milestone for our business which plays a significant role in the Australian dairy industry,” Mr Dedoncker said.
"It would be a great outcome if Australian investors, including our staff and the farmers who supply us with their milk, could have the opportunity to participate in the ownership of our business with its iconic Australian brands.
“As we explore our options we will be mindful that our customer and farmer relationships are core to our business.
“These key stakeholders can be confident there will be no change in how we engage with them through this period, while an outcome that results in improved access to external capital will enable Fonterra Australia to continue advancing the Australian dairy industry.”
Fonterra Australia Suppliers’ Council chair Alan Davenport said he hoped ownership options could present opportunities to further align supplier interests.
“Farmers are already proud to supply milk for a fantastic stable of local brands, and I am pleased that one of the options under consideration is an IPO of Fonterra Australia,” Mr Davenport said.
“I look forward to working with René and the team to ensure any change to the ownership structure builds on the partnership between Fonterra Australia and its farmer suppliers.”
Fonterra’s chief executive officer Miles Hurrell said the Australian business remained important to the co-op.
“By having access to ongoing external capital, we believe the Australian business will be best placed to deliver on its strategy and capture its full potential, at the same time as unlocking capital for the co-op,” he said.
The co-op is also starting divestment of its Chile investments and said, all going to plan, a significant portion of the net sale proceeds from the transactions could be returned to shareholders by the 2024 financial year.
