MercoPress. South Atlantic News Agency

Fonterra divesting from Chile after thirty years operations

Plus leaving Chile Fonterra is planning a partial exit from Australia and an ambitious investment program involving some US$ 2bn

New Zealand's dairy group Fonterra, one of the largest in the world has announced it is leaving Chile after thirty years and has put on sale its Chilean branch Soprole of which it controls 99% of the stock.

The company said the divestment process is estimated to take two years and it is focused on improving assets and debt conditions, plus improving production and profits in New Zealand by 2030.

Besides leaving Chile Fonterra is planning a partial exit from Australia and implementing an ambitious investment program involving some US$ 2bn in improving the value of produce plus sustainability and more research and development during the next decade.

Another US$1bn would be invested in reducing carbon emissions and improving water efficiency and treatment at its manufacturing sites.

“The objective is to further grow in the foodservice and consumer channels in Asia Pacific markets gaining more value through the ingredients channel”

On the divestment of its Chilean investment, Fonterra plans to differentiate New Zealand milk on the world stage and needs to focus its capital and people on enhancing homemade products.

“Soprole is a leading Chilean dairy brand, and Prolesur is a subsidiary of Soprole focused on sourcing milk and manufacturing products in Southern Chile. The operations do not require any New Zealand-sourced milk or expertise, and in this context, we are starting the process to divest our integrated investment in Chile.”