S & P agrees with you 100% http://www.sharechat.co.nz/article/4...d-recoveryhtml
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S & P agrees with you 100% http://www.sharechat.co.nz/article/4...d-recoveryhtml
The real problem lies with the very nature of Fonterra as a quasi co operative causing the fundamental conflict of interest, meeting the payout demands of its shareholder farmers and its serious need for capital. Can't help compare Fonterra with A2 or say FPH who both have little or no divi return to share holders because they need to retain capital for growth.
Who knows ? A relativly simple business of collecting and processing dairy milk from N.Z. suppliers and adding value by turning it into other products like ice-cream, yogurt, milk powder and cheese has been turned into some dysfunctional multinational behemoth at the behest of so called expert executives paid millions per annum.
This is a ****-up of cataclysmic proportions and its completely uninvest-able in my opinion.
And others also finding that dairying's tough going at present.
https://www.abc.net.au/news/2019-09-...ction=business
Yes....and with the Fonterra share price.....and perhaps needing to destock somewhat....I think "our" banks will be needing to pull the pin on a few farmers. Especially recent conversions. On top of this....if Fonterra is in as much trouble as we suspect...how can they sustain the generous milk price ? Rocky road ahead. China might pick up another low cost asset. Let them do it and then switch everything to horticulture / or forestry.
Australian dairy processor Brancourts goes into voluntary administration after 124-year run
Ms Symes said reduced national milk volume was driving increased competition among dairy processors to secure supply for their factories
https://www.abc.net.au/news/2019-09-...ction=business
guess with increased chinese factories in NZ this is a potential risk for fonterra in the future