if they ever recover , milk consumption is on decline due to various factors
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According to Liu’s translation, the government will “encourage Chinese companies to buy foreign producers and/or set up production facilities overseas, so as to reduce cost of raw ingredients”.
https://www.afr.com/chanticleer/chin...0190604-p51u8q
Given the significant increase in competition within the New Zealand dairy industry, we're disappointed the Government did not recommend removing the requirement for us to supply our farmers' milk to large, export-focused businesses altogether," Monaghan said.
https://www.stuff.co.nz/business/far...lk-to-fonterra
yep govt wants to help foreigners take over the dairy industry
Economist warns Fonterra could end up in foreign hands
The dairy giant's problems are deep seated, and the farmers who own it are partly to blame because they demand too high a price for their milk and starve Fonterra of the capital it needs
https://www.stuff.co.nz/business/113...-foreign-hands
They have had plenty of capital and finance, they just keep putting it into horrendous "investments" and eroding it very quickly. (Beingmate, China farms...) Then they find themselves strangled by debt they used to buy the ****ty assests and undertaking a fire sale of the good ones (Tiptop and more)
If only they had invested in nz in the likes of A2 milk or synlait, we would all be praising fonterra. But you know offshore investments are so much more exciting and Theo and his smarts new best
Farmers are farming capitol gain, requiring Fonterra to provide a high payout to finance the high land values.Fonterra good at removing water from milk, supplying powder which the world has ample.