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Fonterra

Cooperative dairy ingredients and nutrition supplier

Overview

Fonterra produces dairy ingredients and finished dairy products for global manufacturers and foodservice customers, sourced from its farmer-owners. Milk from farmer-shareholders is processed into ingredients like powders, proteins, and dairy solutions that other companies use to create their own products. It differs from competitors by being a farmer-owned co-operative with scale from a major merger and by concentrating on B2B dairy ingredients and foodservice rather than consumer brands. Its goal is to simplify its structure and raise returns for farmer-shareholders by focusing on core global dairy ingredients and expanding its international reach.

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About Fonterra

Simplify's Rating
Why Fonterra is rated
B-
Rated B on Competitive Edge
Rated B on Growth Potential
Rated C on Differentiation

Industries

Food & AgricultureIndustrial & Manufacturing

Company Size

10,001+

Company Stage

IPO

Headquarters

Auckland, New Zealand

Founded

2001

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What believers are saying

  • FY26 revenue hit $27 billion, and underlying operating profit reached $1.8 billion.
  • On 24 Sep 2026, Fonterra announced a NZ$1 billion South Island protein expansion.
  • The 2026/27 milk-price forecast stayed strong at $9.50 per kgMS, supporting farmer loyalty.

What critics are saying

  • Reuters on 23 Sep 2026 flagged El Niño as a 2027 milk-supply downside.
  • Synlait denied August 2026 takeover talks, preserving a rival’s processing capacity and China-link.
  • A bad 2027 drought or biosecurity shock would crush collections and idle expensive plants.

What makes Fonterra unique

  • Fonterra’s co-op ownership aligns thousands of farmer-suppliers behind one milk pool.
  • The March 2026 Lactalis sale refocused Fonterra on B2B ingredients and foodservice.
  • Its China application centers, including Chengdu, embed technical sales close to customers.

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Benefits

  • Wellness Program
  • Mental Health Support
  • Flexible Work Hours
  • Hybrid Work Options
  • Parental Leave
  • Professional Development Budget
  • Employee Recognition

Company News

Yahoo Finance
Nov 6th, 2026
Fonterra's chief executive says China, a third of its business, is about value over volume

Fonterra chief executive officer Richard Allen says Greater China, about a third of its business, remains a strategic market. He spoke at the China International Import Expo. The dairy group is shifting from powders to higher-value products, including food service items for bakeries and restaurants and proteins for healthy ageing and sports. Allen said growth is "a lot less about volume" and more about value. Fonterra is not the cheapest supplier, he said, but it competes on quality and grass-fed credentials. It runs six application centres in China, which are commercial kitchens, and has just opened one in Chengdu to localise products with flavours such as mala. Allen said Fonterra will keep investing in China but must adapt as the market changes quickly.

Mumbrella
Oct 22nd, 2026
Dairy giant Lactalis looking for new CMO seven months after $3.5b Fonterra deal.

Dairy giant Lactalis looking for new CMO seven months after $3.5b Fonterra deal. October 22, 2026 12:03 Australia's largest dairy company Lactalis is on the hunt for a chief marketing officer seven months after completing a $3.5b acquisition of Fonterra's Mainland brands. The Paris-headquartered conglomerate, which now owns Australian household brands Jalna, Oak, Pauls and Western Star Butter, is looking for a CMO to create and "define" a new marketing strategy across its consolidated brand portfolio. According to a job advertisement, the role will report directly to the company's CEO and form part of "a pivotal time as Lactalis Australia and Mainland Dairy come together". The appointment comes as Michelle Scalzi, a founding marketer of Fonterra's Australian Mainland business, departs after 12.5 years with the company. In a Linkedin post, Scalzi said she led Fonterra's local marketing operation for seven years, having built the division from the ground up in 2014. She was promoted to general manager of innovation in Australia in 2018, before taking on responsibility for the wider Oceania region in 2024. However, Mumbrella understands the new CMO role is not a replacement for Scalzi's position. A Lactalis spokesperson said: "[Scalzi] was a highly valued member of the team, and we wish her well for the future. In recent years, Michelle's focus was on consumer innovation opportunities. "Responsibility for this work now sits within an expanded research and development function that supports our broader Lactalis portfolio." Marketing responsibilities, meanwhile, remain distributed across individual brands and business units, with the new CMO expected to "align marketing across the combined organisation". Eleanor Dickinson is a journalist with more than a decade of experience across the UK, Middle East, Asia and Australia. She served as editor of Mumbrella Asia from 2017 to 2018, before spending seven years reporting on technology in Australia. She returned to Mumbrella as chief reporter in September 2025. Fonterra Jalna Lactalis Mainland Dairy Michelle Scalzi Pauls Western Star Butter 1 COMMENTS Michelle is one of the best clients I worked with in my media agency career, look forward to seeing what she does next. User ID not verified. Have your say. Or comment anonymously Your comment will be marked as unverified

Fonterra
Oct 16th, 2026
Fonterra announces Chief Financial Officer resignation.

Fonterra announces Chief Financial Officer resignation. October 16, 2026 Fonterra Co-operative Group Ltd advises that Chief Financial Officer Andrew Murray has resigned to take up a role outside Fonterra. Andrew joined the Co-op as Commercial Director of Fonterra's Global Markets business in 2023, before becoming Fonterra's Chief Financial Officer in 2024. Since then, he has helped oversee the divestment of Mainland Group, Fonterra's enterprise resource planning transformation, and a number of other key initiatives that position the Co-op for the future. CEO Richard Allen says, "I would like to thank Andrew for his contribution and leadership. He has brought clarity, discipline and momentum to important changes the Co-op has undertaken. At the same time, he has strengthened our finance capability and built a highly capable team. We wish him success in his new role." Andrew will remain with Fonterra until the end of the calendar year, supporting a smooth transition. Recruitment for Fonterra's next Chief Financial Officer will begin immediately. For further information contact: Fonterra Communications 24-hour media line Phone: +64 21 507 072

NZ Herald
Oct 15th, 2026
Fonterra CFO Andrew Murray resigns.

Fonterra CFO Andrew Murray resigns. 15 Oct, 2026 01:04 PM Quick Read Fonterra CFO Andrew Murray. Fonterra's chief financial officer, Andrew Murray, has resigned to take up a role outside Fonterra, the co-operative said. Murray joined Fonterra as commercial director of Fonterra's global markets business in 2023, before becoming Fonterra's chief financial officer in 2024. "Since then, he has helped oversee the divestment of Mainland Group, Unlock all articles by subscribing to this international offer All-Access weekly. Herald Premium, Viva Premium & The Listener

University of Waikato
Oct 1st, 2026
Waikato University and Fonterra develop future primary sector leaders.

Waikato University and Fonterra develop future primary sector leaders. Waikato Management School and Fonterra are partnering to develop future governance leaders through practical learning, industry expertise, coaching and mentoring from 2027. 01 Oct 2026 Waikato Management School Associate Dean Dr Leon De Wet Fourie and Pro-Vice Chancellor Jennifer Kerr The University of Waikato is joining forces with the country's largest co-operative to develop the next generation of governance leaders. From 2027, Waikato Management School will deliver Fonterra's refreshed Governance Development Programme, drawing on the School's expertise in executive education, governance and leadership development. The programme will equip current and future governance leaders with industry insight and applied learning to make an impact in the boardroom and their communities, while strengthening leadership capability across New Zealand's primary sector. Waikato Management School Associate Dean Dr Leon De Wet Fourie says the partnership builds on a longstanding relationship with Fonterra and reflects the University's commitment to building leaders who contribute to thriving businesses, communities and regions. "The strength of this programme lies in its connection to practice. Working closely with Fonterra has enabled us to create a governance experience that is grounded in real issues, informed by leading expertise, and designed to develop capable leaders for New Zealand's primary sector," Dr Fourie says. Fonterra established the programme in 2006 to help address succession needs across the dairy industry and rural sector, while building understanding of effective leadership, governance and co-operative business models. Building on the programmes foundations, the refreshed programme offering will draw on the School's strong commitment to regional and rural development, its focus on practical, real-world learning, and insights from leading academics and industry practitioners. Programme Director Professor Brad Jackson will be the lead facilitator for the one-year programme, which includes three three-day residential workshops alongside online tutorials, assignments, personal coaching and a one-hour governance mentoring session. Participants will put governance theory into practice through boardroom simulations, applied case studies, reflective learning and oral presentations, while developing an individual governance development plan. The programme will also provide participants with the opportunity to further their leadership development through a pathway into the University's Master of Business Administration (MBA). Beyond the programme itself, the partnership will support ongoing collaboration through executive education, case study development and future leadership initiatives. Waikato Management School Pro-Vice Chancellor Jennifer Kerr says investing in governance capability is critical to the long-term success of organisations that underpin New Zealand's economy and communities. "Through this partnership, the University and Fonterra are investing in future governance talent and creating opportunities for leaders to strengthen their capability, broaden their perspectives and contribute meaningfully to the future of New Zealand's rural sector." Jennifer is an experienced Chair and Director and is currently a Director of IAWAI - Flowing Waters Ltd and Waipa Networks Ltd. She is former Chair of WorkSafe New Zealand, New Zealand Trade and Enterprise (NZTE), Callaghan Innovation and former Director of New Zealand Rugby, and Eke Panuku Ltd. Jennifer will also be attending each face-to-face session and teaching specific modules as part of the programme.

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