New Zealand First leader Winston Peters is demanding answers from Fonterra over the sale of its consumer businesses to French dairy giant Lactalis.
But the co-operative has said those answers were already publicly available.
Fonterra has agreed to sell major brands like Mainland and Anchor for $3.845 billion.
The inclusion of Bega licenses held by Fonterra's Australian business brings the total proceeds for the sale of consumer and associated businesses to $4.22b.
The sale includes a long-term agreement for Fonterra to sell milk and ingredients to Lactalis.
The deal is expected to settle in the first half of next year, subject to regulatory and shareholder approval.
Voting has opened for shareholders, with a virtual special meeting set down for October 30.
Peters said farmers needed to think "very carefully" about the deal, and was questioning how long the long-term agreement would be.
"Whatever the number, the clock will stop and New Zealand's milk will become just another in a long line of milk jugs. What stops Lactalis from diluting 'New Zealand' products with vegetable fat and lower-quality milk?" Peters asked.
He also questioned whether Fonterra executives would be getting bonuses for the deal, and if they planned on leaving the company after the deal was done.
Peters said Anchor was a flagship and quality brand, with growth ahead of it, and $4 billion was "giving it away".
"No successful milk futures market exists globally – so why does Fonterra think it will succeed where others have failed? Other dairy giants, like the company they seek to sell to, thrive because of their consumer brands."
Criticising Fonterra for selling its brands is not new ground for Peters. In 2019, he expressed disappointment over the sale of Tip Top.
Peters said it was more than a business decision for farmers.
"It's a business decision for a country called New Zealand that since 1850 has been backing this industry," he said.
"And as a nationalist party which we are, we want to know what's happening in the national interest."
Peters said he had spoken to Fonterra three weeks ago but had not received those answers.
'It will still be Fonterra farmers' milk'
A Fonterra spokesperson said it had been engaging with farmers on the strategic rationale for the divestment for 16 months, and the terms of the supply agreement with Lactalis were publicly disclosed and published in the 2025 financial year annual results.
They said the raw milk supply agreement had an initial term of 10 years, and the global supply agreement's initial term was three years.
Both agreements automatically renewed until terminated, with a 36-month notice period.
The spokesperson confirmed there was no bonus payment for management tied to the completion of the transaction.
"Under the terms of the agreement with Lactalis, Fonterra will continue to supply raw milk, dairy ingredients and products to the divested businesses. This means it will still be Fonterra farmers' milk in brands such as Anchor," the spokesperson said.
ACT leader David Seymour said it was up to Fonterra shareholders to decide on whether the brands should be sold.
"If they believe it's a better deal to focus on their core business rather than making ice cream, I think they should be allowed to do that. I don't think politicians should try and tell businesspeople how to run their businesses."
Seymour said Peters had "free speech" to question the deal, but ACT's position was supporting businesses to make their own decisions.
"This is not a socialist country. Fonterra is a company owned by Fonterra shareholders. It's up to them. We don't all own it, if we did then we would be a communist country and I'm opposed to that."
Labour's finance spokesperson Barbara Edmonds said it would be a "sad day" if farmers agreed to the sale as they were "iconic Kiwi brands", but ultimately it was up to farmers to make the decision.
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