Dairy giant Fonterra announced on Wednesday plans to sell its Farm Source livestock division to Carrfields Livestock.
Richard Allen, Farm Source Stores director, said the decision follows a larger review of the co-op.
“In the context of the review of the Co-op’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,” said Allen.
“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.”
Farm Source works with Carrfields to develop several partnerships to ensure that positive connection and competitive offer remains for Fonterra farmers.
“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,” said Craig Carr, Carrfields Group managing director.
Farm Source and Carrfields Livestock said they are committed to ensuring a smooth transfer of employees and clients. The employees who will not transition will be supported by Farm Source to find new opportunities within the co-op.
Carrfields’ ownership will commence on March 1, 2019.
