Int’l - Fonterra again eyeing Australian dairy industry expansion

New Zealand's dairy giant Fonterra this week confirmed plans to expand its operations beyond the 21pc of the total Australian milk production that it already processes. Chief executive, Andrew Ferrier, told a meeting in Melbourne this week that Fonterra was in no rush to pursue that ambition. But he said the group is financially primed and ready to look at any opportunities - large or smaller - that become available. Last year, Fonterra was losing bidder in the battle for listed Australian company National Foods, which eventually sold for $1.9 billion to the Philippines group San Miguel, which already owned the Berri fruit juice business. Until another opportunity arises for a big one, Fonterra will continue to drive its “organic growth”, both in its milk processing businesses and in the expanding range of products the Fonterra Brands business now markets in Australia. Questioned about the potential to acquire the NSW-based Dairy Farmers Co-operative, Mr Ferrier said Fonterra would always be interested in a large-scale business like that. But “it has to be available and at the right price.” Fonterra’s Australian revenues now total an annual $1.8 billion. This includes raw milk processing facilities in WA, Tasmania, Victoria and southern NSW. And while the bulk of that was dedicated to processed products such as cheese and milk powders, Mr Ferrier said they also include a wide range of fresh and processed consumer products. "Fonterra in Australia will continue to 'grow our footprint'," he said.