Fonterra's CEO says the co-op's decided to divest a number of overseas operations for the good of the business.

The dairy giant has signalled its intent to sell-off some non-New Zealand operations, like Fonterra Oceania and Fonterra Sri Lanka.

CEO Miles Hurrell says Fonterra's strengths lie in producing world-class ingredients, such as milk powder and cheese to sell to consumers and other businesses.

He says the Oceania and Sri Lanka operations weren't core - but what is, is being an extension of farmers' farms and taking their products.

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