Radio New Zealand - Te Reo Irirangi o Aotearoa

New Zealand dairy cooperative Fonterra has sold its 25% stake in British-based joint venture AFF to majority owner Arla Foods of Denmark for an undisclosed amount.

AFF was established in 2002 to market block butter, spreads and aerosol cream products in the United Kingdom, including the Anchor brand.

Fonterra will continue to licence the Anchor brand to Arla and will continue to supply butter.

Fonterra says the joint venture had been very successful, but now does not fit with its long-term investment strategy.