Lactalis has finalized its $3.4 billion acquisition of Fonterra’s Australian operations. Despite the ownership change, Australian dairy suppliers are assured that their representative council will maintain its influence and purpose.
Australian dairy farmers who supply Fonterra have been informed that their representative council will continue to function effectively following Lactalis’ acquisition of Fonterra’s Australian operations for $3.4 billion. Although the change in ownership might result in a new name for the suppliers council, its primary role and responsibilities are expected to remain unchanged.
Stuart Griffin, recently appointed as the chair of the Fonterra Australia Suppliers Council, emphasized the council’s role in facilitating respectful dialogue between farmers and processors. The council has historically served as a platform for communication and feedback, ensuring that the perspectives of suppliers are considered in decision-making processes.
The acquisition, announced in August and approved by the Australian Competition and Consumer Commission, means that farmers will deliver milk to a new owner but will continue to interact with largely the same operational teams. Griffin noted that tanker drivers, field staff, and daily contacts will remain, supporting continuity as Lactalis takes control at the start of the new season.
The suppliers council was established after the sale of Bonlac to Fonterra, when farmers felt their influence diminished due to the loss of cooperative ownership. Since then, both farmers and processors have acknowledged the value of having a formal representative structure to maintain trust and constructive engagement.
Beyond negotiating milk prices, the council focuses on long-term supplier profitability. Griffin highlighted the importance of processor-supported services such as trained field officers in agronomy, finance, and milk quality, which aid farmers in enhancing business performance through improved on-farm management and support systems.