Fonterra to sell Farm Source livestock division

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The acquisition will take place on March 1, 2019. Pic: ©Getty Images/Oknopo

Fonterra has announced it will sell its Farm Source livestock division to livestock agency provider Carrfields Livestock.

Richard Allen, Farm Source stores director, said the decision was made in the context of a larger review under way within the dairy cooperative.

“In the context of the review of the coop’s assets and investments, we have made the decision to sell the livestock division to Carrfields Livestock. This will better serve the livestock team and the farms they service.

“While Farm Source’s livestock division has contributed positive returns since inception, we believe the investment required to maintain and grow this division can be more effectively targeted towards improving core areas of the Farm Source business,” Allen said.

Country-wide business

Craig Carr, Carrfields group managing director, said the acquisition, which will take place on March 1, 2019, is a strategic opportunity for Carrfields Livestock to fill gaps in its current national network.

Carr said, “This acquisition will take the Carrfields Livestock team to over 150 livestock agents spread right across the country. This strategic partnership will offer Farm Source clients and Fonterra farmer owners access to a nationwide agent and sale yard network provided by a New Zealand family-owned business.”

Farm Source said for a small number of employees who will not have the option to transition to Carrfields Livestock, Farm Source will support them in identifying new opportunities within the coop.