Fonterra is merging its Australian operation with its New Zealand brands business.
The giant New Zealand co-op's chief executive officer Miles Hurrell announced on February 19 it had decided to integrate two important parts of our business.
The new business will be known as Fonterra Oceania.
The current Fonterra Australia managing director René Dedoncker will lead the new business, which will start operating on May 1.
"The change will strengthen our trans-Tasman offering in what is an increasingly competitive marketplace," Mr Hurrell said.
"Our businesses in Australia and New Zealand have many complementary aspects and integrating them builds on these strengths."
The NZ brands business includes Fonterra's consumer brands and foodservice businesses in that country, including Anchor, Mainland and Kpiti.
These will be produced from Fonterra's NZ milk supply.
"The Australian milk pool will continue to provide the milk solids for our Australian brands and ingredients," Mr Hurrell said.
The announcement comes just a week after Fonterra announced an increase in this season's forecast farmgate milk price for its NZ suppliers.
