January 9, 2019
Fonterra's Farm Source™ to sell livestock division to Carrfields
Fonterra has announced that it will sell the Farm Source™ livestock division to Carrfields Livestock, an established livestock agency provider.
Richard Allen, Farm Source™'s stores director, said the decision to sell was made in the context of a larger review underway within the New Zealand dairy co-op.
"[The decision to sell] will better serve the livestock team and the farms they service," Allen added.
"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™ is working with Carrfields to develop a range of partnership offerings to ensure a positive connection and competitive offer remains for Fonterra farmers.
Craig Carr, Carrfields Group's managing director, said the acquisition is both exciting and a strategic opportunity for Carrfields Livestock to fill gaps in their current national network.
"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," Carr explained.
Farm Source™ and Carrfields Livestock are committed to ensuring a smooth transfer of employees and clients, minimising any disruption to the business with Carrfields Livestock's ownership which will commence on March 1, 2019, Fonterra said.
For a small number of employees who will not have the option to transition to Carrfields Livestock, Farm Source™ will support them in identifying new opportunities within Fonterra.