Economist Peter Fraser on Fonterra's sale of Tip Top

Author
Newstalk ZB staff,
Section
Audio,
Publish Date
Monday, 13 May 2019, 5:57p.m.
A Fonterra milk tanker. (Photo / File)

Agricultural economist Peter Fraser joins Heather du Plessis-Allan to talk about Fonterra's sale of Tip Top.

Deputy Prime Minster Winston Peters says it is a 'sad day' as Tip Top's going to an overseas country, as Fonterra has sold the ice cream company to dairy-giant Froneri for $380 million.

But Fraser says to be fair to Fonterra, it was a move they needed to make.

"They stated quite clearly last year in the aftermath of some pretty disastrous losses, they need to strengthen their balance sheet, they need to sell some non-core assets. Top of the list of the non-core assets was Tip Top".

However Fraser adds that the moves signals Fonterra's backing out of their initial dream of creating more than a basic milk product.

LISTEN TO PETER FRASER TALK WITH HEATHER DU PLESSIS-ALLAN ABOVE.

ON AIR: Heather du Plessis-Allan Drive

4p.m. - 7p.m.