Bonlac future may lie under Fonterra

Bonlac looks as though it may have to consider a merger with New-Zealand dairy company Fonterra as it struggles to deal with its massive debts.

Bonlac has advised its supplier shareholders that it is in ongoing discussions with Fonterra, regarding a way forward for the company.

In a letter to the supplier shareholders, Bonlac’s chairman Noel Campbell said the company had been looking at a number of ways to improve the company’s turnover.

“The Bonlac board remains determined that any strategy we adopt is aimed at achieving the long-term sustainability of the business, a competitive milk price, full value for Bonlac shares and the recommencement of dividend payments,” he said.

Bonlac is planning supplier meetings for early May to present further details regarding the recommended way forward.