Fonterra Sale: Dairy’s Future Impact
Here’s a breakdown of the text provided,focusing on the key facts:
Main Topic: Fonterra‘s strategic shift and value creation.
Key Points:
Global Reach: fonterra sells dairy ingredients to over 100 countries.
Product applications: Thes ingredients are used in diverse products like protein shakes (US), pizza mozzarella (China), and desserts (Southeast asia).
Innovation Investment: Fonterra invests over $100 million annually in research and development, resulting in over 500 patents and 60 global partnerships.
Strategic Partnerships: New partnerships with major customers (Nestle, Mars, Lactalis) are expected to accelerate innovation by leveraging their consumer insights.
Focus on Ingredients Business: Fonterra is prioritizing its Ingredients business, which delivers a better return on capital and contributes more to the milk price paid to farmers.
Consumer Business Performance: The Consumer business consistently underperforms in terms of return on capital and requires higher operational expenditure.
* Milk Utilization: The Consumer business utilizes less than 8% of Fonterra’s milk supply.
Image Description:
The text is accompanied by an image of dairy products,with the caption: “Fonterra sells dairy ingredients into more than 100 countries. Photo / 123RF”. The image is available in multiple resolutions (576w, 768w, 992w, 1440w) for different screen sizes.
Hidden Text:
The text includes several paragraphs marked with style="display:none". These paragraphs contain the core information about Fonterra’s strategy and performance.
in essence, the text describes Fonterra’s move to focus on its high-performing Ingredients business and strengthen partnerships to drive innovation, while acknowledging the challenges with its Consumer business.