New Zealand dairy giant Fonterra has consolidated its operations in Chile, while at the same time appointing an interim CEO to its business unit in greater China.

The moves come as part of a wider realignment of Fonterra’s international business operations.

Stake

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In Chile, Fonterra said it has bought out the minority shareholder in Proslesur, which is a milk processor in southern Chile. Fonterra said it had paid NZ$29.3m (€17.3m) for the remaining 14% stake in Proslesur held by Fundación Isabel Aninat - a Catholic charity.

Proslesur sells most of its dairy products to Soprole, a leading consumer dairy business in Chile, which is also owned by Fonterra. With full control of both entities, Fonterra says it will be able to better integrate the two businesses.

“Prolesur and Soprole are both strong businesses, but their recent performance has been impacted by challenging market conditions. Having the two more closely integrated will generate operating efficiencies across the supply chain from milk collection, to processing and administration,” said CEO of Fonterra’s AMENA division Kelvin Wickham.

China

Fonterra has also announced the appointment of Ten-Han Chow as interim CEO for its greater China division. The creation of the new role on Fonterra’s management team reflects the importance of the Chinese market, said Fonterra CEO Miles Hurrell.

Chow is currently president of Fonterra's ingredients brand NZMP for greater China and southeast Asia and will take on the role of interim CEO, while the co-op works to recruit a permanent CEO for the region.