New Zealand dairy giant Fonterra has decided to retain full ownership of its Australian business after a 12-month review, with chief executive Miles Hurrell saying the Australian consumer brands are important in the company’s strategy of moving higher up the value chain.

Fonterra’s Australian business includes consumer brands Western Star butter, Perfect Italiano and Mainland cheese. It also operates the Bega cheese brand under a long-standing licence arrangement even though Bega Cheese is a rival dairy and food company.