Fonterra Australia today finalised the purchase of the assets of Tasmanian yoghurt business, Tamar Valley Dairy. The Tamar Valley Dairy business is now under full Fonterra ownership and management.
Under the terms of the sale, Fonterra has acquired the processing equipment, the related services, and intellectual property and trademark for the Tamar Valley Dairy brand. Fonterra worked closely with Deloitte Restructuring Services to achieve the completed sale.
Importantly, 122 positions of the Tamar Valley Dairy workforce will now transition to Fonterra to ensure the right skill-set and expertise are available to ensure continuity of operations and the long-term sustainability of the business. Regrettably, 18 roles are not required and have been made redundant by the Administrator.
“This is a positive result for Tamar Valley Dairy, the workforce and the community. We are now working hard to fully integrate Tamar Valley Dairy into our manufacturing footprint to create greater efficiencies and scale,” said Judith Swales, Fonterra Australia Managing Director.
“This acquisition strengthens Fonterra’s position as a leader in the Australian dairy industry, and complements our existing yoghurt portfolio, which includes one of Australia’s most loved and market-leading yoghurts, Nestlé SKI.
“We see tremendous opportunity going forward. We will continue to work closely with all stakeholders to provide stability and continuity for the business, the wider community and maintain Tamar Valley Dairy’s history of innovation.”
“Fonterra is committed to the total value chain in Tasmania - from farmers, to employees, related suppliers and services, and to the current and future Australian customers and consumers this world-class operation and its products will attract,” said Ms Swales.
In Tasmania, Fonterra currently operates two manufacturing facilities at Spreyton and Wynyard, is responsible for processing half of Tasmania’s milk, collecting over 500 million litres of milk from almost 260 dairy farms each year, and employs 220 people. Over the last two years Fonterra has invested $20 million in these operations.