Fonterra Australia will become part of a new entity with Fonterra Brands New Zealand to be known as Fonterra Oceania.
Fonterra has moved to assure Australian suppliers that milk sourced from Australian farmers will continue to be used to make the established Australian brands.
Former Fonterra Australia managing director Rene Dedoncker will be leading Fonterra Oceania.
Asked if the bigger entity will distract from management of the Australian component, the company said Mr Dedoncker had many years of experience holding global and multi-geography roles, and will be well supported by his trans-Tasman leadership team.
“Fonterra’s commitment to the Australian dairy industry is unchanged,” the company said.
“There will be no change for our Australian farmers, and the Australian milk pool will continue to provide the milk solids for our Australian brands and ingredients.
“For our Australian Farm Source team, it is very much business as usual. They remain focused on providing excellent service to our farmer suppliers based in Australia, to secure their milk and help their businesses grow.”
Fonterra Brands New Zealand comprises consumer brands and foodservice businesses in New Zealand, including brands Anchor, Mainland and Kāpiti, which will continue to utilise New Zealand farmers’ milk.
The integration of the two will take effect from May 1.