New Zealand-based dairy co-operative Fonterra is set to sell the Farm Source livestock division to Carrfields, an agribusiness company.

The move is reported to be part of an ongoing major review within the co-operative.

Farm Source Stores director Richard Allen said: “In the context of the review of the co-op’s assets and investments, we have made the decision to sell the livestock division to Carrfields Livestock. This will better serve the livestock team and the farms they service.

“While Farm Source’s livestock division has contributed positive returns since inception, we believe the investment required to maintain and grow this division can be more effectively targeted towards improving core areas of the Farm Source business.”

“We believe the investment required to maintain and grow this division can be more effectively targeted towards improving core areas of the Farm Source business.”

Additionally, Farm Source has partnered with Carrfields to develop a range of offerings for Fonterra farmers.

Carrfields Group managing director Craig Carr said: “This acquisition will take the Carrfields Livestock team to over 150 livestock agents spread right across the country.

“This strategic partnership will offer Farm Source clients and Fonterra farmer owners access to a nationwide agent and sale yard network provided by a New Zealand family-owned business.”

Carrfields Livestock ownership commences from 1 March, and both companies noted that they are committed to ensuring a smooth transfer of employees and clients, minimising any disruption to the business.

Farm Source intends to support employees who do not have an option to move to Carrfields Livestock by identifying new opportunities within the co-op.