About 88 per cent of the total farmer votes cast were in support of the divestment.
The sale comprises Fonterra’s global consumer business (excluding Greater China) and consumer brands; the integrated foodservice and ingredients businesses in Oceania (including Australia) and Sri Lanka; and the Middle East and Africa foodservice business.
Chairman Peter McBride said the board and management team were encouraged by the level of engagement from farmer shareholders in the lead-up to the vote.
“We’ve been pleased to see so many farmers joining in the discussions since the start of this process in May last year when we first announced the decision to explore divestment options, and especially over the past month or so when the full details have been available,” Mr McBride said.
“It helps to demonstrate one of the key things that sets us apart from most other processors — our farmers have a direct say in the future of their co-operative, and they’ve made the most of that opportunity.”
Mr McBride said the decision to divest the Mainland Group businesses was significant and one the board did not take lightly.
“We have examined the strategic context we operate in, our strengths and how as a co-op we create value for our farmer owners,” he said.
“The divestment will usher in an exciting new phase for the co-op. We will be able to focus Fonterra’s energy and efforts on where we do our best work. We will have a simplified and more focused business, the value of which cannot be overstated.”
Completion of the divestment remains subject to securing certain regulatory approvals and the separation of Mainland Group business from Fonterra, both of which are well under way.
Subject to these steps being completed, Fonterra expects the transaction to complete in the first half of the 2026 calendar year.
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