Why is there a lack of consistent supply of Anchor Trim milk at our local Hibiscus Coast supermarkets?

The frustration on the Coast highlights a wider issue following a major change in the New Zealand dairy landscape.

Dairy co-operative Fonterra recently sold its Anchor milk and butter and Mainland Cheese brands to the French company Lactalis for $4.2 billion.

This deal has generated conversation among local consumers and the business community.

The decision is seen by some, including Tim Hazledine, Emeritus Professor of Economics at the University of Auckland Business School, as an acknowledgement that Fonterra’s management has struggled to generate acceptable returns from these consumer assets.

Tim Hazledine is Emeritus Professor of Economics at the University of Auckland Business School.

The sale’s proceeds provided a significant tax-free payout to each of the co-op’s farmer shareholders.

The change in ownership raises questions about the long-term future of these iconic brands in New Zealand.

While the domestic dairy market accounts for a small portion of Fonterra’s total revenue, the brands hold significant cultural weight. Lactalis is a global company with processing facilities worldwide.

Industry observers note that after a six-year statutory period, the French company could theoretically choose to process these products outside of New Zealand, using milk sourced from elsewhere.

This would mean that products like Anchor butter and Mainland cheese consumed here could eventually be imported.

Fonterra’s executives have stated that by freeing up capital and management attention from the consumer brands, they will be able to focus on their core "ingredients engine," which involves bulk products like milk powder and protein concentrate.

The co-op’s financial performance over the past two decades shows that its growth in revenue and value added per kilogram of processed milk solids has significantly lagged behind international competitors.

For the local businesses and residents of the Hibiscus Coast, the key focus remains on the reliability and quality of everyday dairy products.

While the ownership has changed, the supply chain for now remains the same.

The community awaits to see what approach the new French owners will take with these established and well-regarded Kiwi brands.

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