Miles Hurrell: Fonterra CEO explains the reasoning behind selling off consumer brands

Fonterra’s elaborating on the details of their consumer brand sell-off.  The conundrum comes off the back of a monster half year result in which operating profit rose to 16%.  The planned divestment could see brands like Anchor and Mainland sold off.  CEO Miles Hurrell told Mike Hosking the key for any good business is knowing what you’re good at.   He says that over the years, the returns as an ingredients business have been stellar, but farmers aren’t getting the desired return on capital from the consumer side of things.  He says they believe they can get higher returns from investing that cash back into ingredients and food service.   LISTEN ABOVE See omnystudio.com/listener for privacy information.