New Zealand-based dairy cooperative Fonterra Co-op Group Ltd. said Jan. 9 that it will sell its Farm Source livestock division to Carrfields Livestock Ltd. as part of a companywide review.
Fonterra said that although the livestock division has been producing positive returns, the investment needed to maintain and grow it would be better spent in Farm Source's core areas.
Financial terms were not disclosed. Carrfields is expected to take ownership of the division by March 1 and absorb most employees. Fonterra will help relocate jobs that cannot be transferred to other parts of the co-op, the company said.
In December 2018, Fonterra said it was reviewing options for its ice cream brand Tip Top as part of the restructuring through which it hopes to reduce debt by NZ$800 million by the end of the financial year.