News: FCG UPDATE 1-NZ's Fonterra to regain Darnum plant ownership, looks to sell ice cream business

(Adds details about Tip Top, ownership of Darnum plant, Q1 results)

Dec 6 (Reuters) - Fonterra Co-operative Group Limited (FCG) said on Thursday it is looking to sell its ice cream business Tip Top and would regain full ownership of its Darnum plant in Victoria by year end after unwinding a joint venture.

The dairy giant said it has appointed FNZC as an external adviser to consider ownership options for Tip Top, which it said has reached maturity and "will require a level of investment beyond what we are willing to make".

The world's largest dairy exporter also said it would regain full ownership of the Darnum plant by Dec. 31, having on Wednesday agreed to shut down the Darnum joint venture with Chinese infant formula group Beingmate Baby & Child Food Co Ltd 002570.SZ .

In 2015, Fonterra and Beingmate entered a joint venture to buy the Darnum plant, giving Fonterra a 49 percent stake.

It said it would enter into a multi-year agreement to supply ingredients to Beingmate from the plant.

The company said it would pay its dairy farmers NZ$6.00 to NZ$6.30, down from the prior NZ$6.25 to NZ$6.50 per kgMS (kg of milk solids) range set in October.

Fonterra Chairman John Monaghan cited for the revision global milk supply remaining stronger relative to demand.

The company posted a 4 percent decline in first quarter revenue while sales volumes were down 6 percent for the quarter.