Goodman Out Competed by Fonterra

NEW ZEALAND - Fonterra has such a dominant position in domestic dairy sales that its main rival, Goodman Fielder's fresh dairy business, is struggling to compete, says an investment analyst.
calendar icon 20 January 2009
clock icon 1 minute read

Goodman Fielder's lack of success against Fonterra with the Tararua, Puhoi Valley Cheese and Meadow Fresh brands has attracted attention after an Italian daily La Repubblica said in an unsourced report on Saturday that Goodman's fresh dairy operation might be bought by Parmalat SpA, reported New Zealand Press Association.

The newspaper said Parmalat had hired investment bank Mediobanca SpA to study a possible bid for the Dairy Fresh unit, originally held by New Zealand billionaire Graeme Hart but the Italian company today told Reuters newsagency that it was not interested in buying the dairy business from Goodman Fielder.

The speculation shone a spotlight on the potential for sale of the New Zealand dairy business to earn Goodman more than $NZ626 million -- if it can find a suitable buyer.

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