An agricultural economics expert says Fonterra's change in strategy has come as a surprise. 

The dairy giant has signalled its intent to divest brands including Anchor and Mainland, and overseas operations Fonterra Oceania and Fonterra Sri Lanka. 

It wants to focus on producing ingredients and selling those to consumers and other businesses.

Lincoln University agricultural economics professor Alan Renwick told Mike Hosking that the brands are likely to be bought by offshore companies. 

He says the main competitor in New Zealand —Goodman Fielder— is based in Singapore, and if they're looking to buy more they could go to Singapore.

LISTEN ABOVE

An agricultural economics expert says Fonterra's change in strategy has come as a surprise.  
The dairy giant has signalled its intent to divest brands including Anchor and Mainland, and overseas operations Fonterra Oceania and Fonterra Sri Lanka.  
It wants to focus on producing ingredients and selling those to consumers and other businesses. 
Lincoln University agricultural economics professor Alan Renwick told Mike Hosking that the brands are likely to be bought by offshore companies.  
He says the main competitor in New Zealand —Goodman Fielder— is based in Singapore, and if they're looking to buy more they could go to Singapore. 
LISTEN ABOVE

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Open your mind to the world with New Zealand’s number one breakfast radio show. Without question, as New Zealand’s number one talk host, Mike Hosking sets the day’s agenda. The sharpest voice and mind in the business, Mike drives strong opinion, delivers the best talent, and always leaves you wanting more. The Mike Hosking Breakfast always cuts through and delivers the best daily on Newstalk ZB.

Open your mind to the world with New Zealand’s number one breakfast radio show.Without question, as New Zealand’s number one talk host, Mike Hosking sets the day’s agenda.The sharpest voice and mind in the business, Mike drives strong opinion,...