SYDNEY, Oct 30, 2025 (BSS/AFP) - Farmers who own New Zealand dairy cooperative Fonterra voted Thursday to sell its consumer business to French group Lactalis, a decision slammed by the country's foreign minister as "utter madness".

Final farmer votes were cast in a virtual meeting in the morning, with 88.5 percent of the total ballot cast in favour of the sale of Fonterra's global consumer and associated businesses, Fonterra said in a statement.

The total sale price is NZ$4.2 billion (US$2.4 billion), after including the value of Bega Cheese licences worth NZ$375 million, the company said.

Foreign Minister Winston Peters said the vote meant "iconic" brands such as Anchor, Mainland and Kapiti were being sold off to the French firm.

"This is utter madness. It is economic self-sabotage," Peters said in a post on social media.

"This is an outrageous short-sighted sugar hit that is just giving away New Zealand's added value to a company from a major EU country," he said.

Fonterra would lose the long-term security of its business, Peters warned.

"Three years after this deal starts, Lactalis can begin the three year notice to terminate the milk supply to these brands. Six years is meaningless for a long-term exporter. When it's over, it really is over."

Fonterra chairman Peter McBride said the company was pleased to have received a "strong mandate" from the farmers who own the cooperative.

"We will be able to focus Fonterra's energy and efforts on where we do our best work. We will have a simplified and more focused business, the value of which cannot be overstated," he said.

Fonterra said it expected the deal to be completed in the first half of 2026 pending regulatory approvals and the process of separating the consumer operations from the rest of the coop.