Fonterra to sell Mainland Group to Lactalis for NZ$4.22bn

Fonterra’s farmer shareholders have given the go-ahead for the co-operative to sell its global consumer and associated businesses, Mainland Group, to Lactalis for $4.22 billion, with 88.47% of the total farmer votes cast in support of the divestment.

The final votes on the divestment were cast at a virtual Special Meeting held on 30 October 2025.

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,” 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.

“We’re pleased to have received a strong mandate, with 88.47% of the total farmer votes cast in support of the recommendation and 80.59% participation based on milk solids voted. We want to thank all farmer shareholders who voted.”

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 underway.

The transaction is expected to be complete in the first half of 2026.

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