The dairy giant has just reduced its 2018/19 forecast Farmgate Milk Price range from $6.25 to $6.50 per kilo of milk solids to $6.00 to $6.30.
Fonterra chairman John Monaghan wants to see Tip Top remain a New Zealand-based business.
He says although performing well, it's Fonterra's only ice cream business, and has reached maturity as an investment.
Monaghan says to take Tip Top to its next phase successfully will require a greater investment than Fonterra's willing to make.
Fonterra's appointed FNZC as its external advisor as it considers a range of options.
The co-operative has also reached an agreement in principle with Chinese food manufacturer Beingmate, meaning Fonterra will return to full ownership of the Victoria plant, and Beingmate will buy its ingredients.
