Fonterra would enter non-exclusive milk supply deals with Mainland Group buyer Lactalis

Poker faces from Fonterra chair Peter McBride (centre) and chief executive Miles Hurrell (right) as CFO Andrew Murray runs through the numbers. (Image: Annaliese Shortland/NZME)

Garth Bray

Thu, 25 Sep 2025

Fonterra’s deal to sell its Mainland Group and consumer brands to Lactalis is underpinned by a non-exclusive, 10-year raw milk supply agreement that will automatically renew, but either party can cancel with 36 months’ notice after the first seven years. Fonterra chair Peter McBride referred to the supply agreement as “a bit of a two-edged sword” when briefing media on the co-operative's full-year results on Thursday.“Dairy milk is 10 years-plus, and then the ingredients vary by ingredient, are short...

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