Dairy giant Lactalis is expanding internationally: "When will it invest in France in the same way?"

French dairy giant Lactalis announced Friday that it has reached an agreement with New Zealand dairy cooperative Fonterra to acquire part of its operations, particularly internationally. The French group, based in Laval, Mayenne, operates in 50 countries and employs 85,500 people.

In a separate statement, Fonterra said it had agreed to the sale to Lactalis, which includes its consumer business, for NZ$3.845 billion (€1.93 billion). The deal includes the acquisition of iconic brands such as Mainland, Anchor, Perfect Italiano, Western Star, Ratthi, Cheesdale, Fernleaf, Anlene, Anmum, and more, Lactalis said.

"Sixteen production sites in Australia, New Zealand, Sri Lanka, Malaysia, Indonesia, and Saudi Arabia will join Lactalis Australia," with some 4,300 employees, the French giant said in a statement. "The total represents more than NZ$5.6 billion in sales, or more than €2.8 billion," it added.

"We created the Egalim laws to remunerate French producers, support family farms and maintain the vitality of the regions. Importing fat from abroad could also create a distortion of competition with our French milk producers, who do not have the same production standards at all," Yohann Barbe, president of the Federation of Milk Producers, fears to RMC .

"When will he invest in France in the same way, to ensure the continuity of producers? Last year, he already announced that he was selling off more than 500 million liters of domestic produce," he continues, disillusioned.

This sale remains subject to financial adjustments and certain conditions, including "the approval of Fonterra's farmer shareholders" by a vote planned "for late October or early November," the New Zealand cooperative said.

This operation "marks a major strategic step in our development in Oceania, Southeast Asia and the Middle East," declared the president of the world's leading dairy products group, Emmanuel Besnier, quoted in the press release.

"By combining Fonterra's consumer businesses and leading brands with our already established presence in Australia and Asia, we will strengthen our position in key markets," he added.

“As the world’s leading dairy group, Lactalis has the scale and resources to take these brands and businesses to the next level. Fonterra’s farmers will continue to benefit from their success, with Lactalis becoming one of our most important ingredient customers,” said Miles Hurrell, Fonterra’s Managing Director, as quoted in the Lactalis press release. In Australia, Lactalis already has 15 production sites and employs more than 2,500 people.

The group is "present in numerous dairy product segments" ranging from milk drinks to cheese and yogurt. It "markets a broad portfolio of local and international brands in Australia," including Président, Galbani, Lemnos, Harvey Fresh, Oak and Ice Break.

Lactalis, which has remained a family business since its founding in 1933, surpassed €30 billion in sales for the first time in 2024. In June, it completed the acquisition of General Mills' US yogurt business, now claiming its place as the "third-largest player in ultra-fresh" in the United States.