The way is now clear for Fonterra farmer shareholders to receive a $3.2 billion payout in two weeks' time

Fonterra has formally completed the sale of Mainland Group and its household brand names Anchor and Mainland,  to French company Lactalis.

The completion of the $4.22 billion sale means Fonterra can now proceed with the $2 per share capital return (total $3.2 billion) to the co-operative's farmer shareholders. This is now set to happen on April 14.

Fonterra chairman Peter McBride said completion of the sale "is a significant milestone which sets the co-op up for the future".

Chief executive Miles Hurrell said Fonterra would be targeting continuing to grow its "high performing" ingredients and foodservice businesses.

"We can now focus our resources, R&D spend, and farmers’ capital on continuing to grow these businesses, which generate the greatest return for farmers’ milk."

Hurrell said completion of the sale also signals the start of a "long-term partnership" with Lactalis.

"Lactalis becomes one of our most significant Ingredients customers, as we continue to supply milk and other products to the divested businesses," he said.

The co-op recently announced half-year profits of $750 million, announced a 40c a share dividend, and increased its forecast farmgate milk price for the season to $9.70 per kilogram of milk solids.

Fonterra said on Tuesday that its full-year earnings guidance for continuing operations remains unchanged at 50-65 cents per share.

"Fonterra continues to target earnings to return to FY25 levels by FY28, offsetting the Mainland Group divestment, through focused execution of its strategy."

This is the dairy industry payout history.