Melbourne, February 14, 2026 — Fonterra is finalising the sale of its Mainland Group to French dairy multinational Lactalis in a deal valued at $4.2 billion, with completion expected by the end of March.
The transaction will impact approximately 4,200 employees across Oceania, Sri Lanka and the Middle East. In Australia and New Zealand, around 2,500 employees are set to transition to the restructured Mainland Dairy business under Lactalis’ ownership.
Under the new arrangement, Mainland Dairy will continue to collect milk from about 460 farmers and operate eight manufacturing facilities across Victoria and Tasmania. Prominent consumer brands including Perfect Italiano, Mainland and Western Star will transfer to Mainland Dairy as part of the deal.
David Breckenridge, Managing Director of Fonterra Oceania, said the transition would be operationally seamless. The leadership team, field staff and service structures will remain in place, with changes largely limited to updated branding to reflect new ownership. He emphasised that while corporate ownership is shifting, day-to-day operations are expected to continue without disruption.
Following the sale, Fonterra will retain a limited commercial presence in Australia, maintaining relationships with a small number of customers. Mainland Dairy will also serve as a distributor for selected Fonterra products in the region.
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The shift has already been visible at industry events such as the Australian Dairy Conference, where Mainland Dairy features as a key partner this year, underscoring the changing structure of the Australian dairy landscape.
The divestment marks a strategic recalibration for Fonterra as it narrows its operational focus, while Lactalis strengthens its global dairy portfolio and expands its footprint across key production and consumer markets.
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