see fonterra realising what i was saying will happen in the long run
Fonterra raises alarm over factory closures if rules don't change
https://www.stuff.co.nz/business/far...es-dont-change
Printable View
see fonterra realising what i was saying will happen in the long run
Fonterra raises alarm over factory closures if rules don't change
https://www.stuff.co.nz/business/far...es-dont-change
Dean Foods, America’s biggest milk producer, files for bankruptcy
https://www.cnbc.com/2019/11/12/dean...ankruptcy.html
yep another one bites the dust in the ongoing death of traditional milk processors. just goes to show if you dont move up the value chain your days are numbered
The 94-year-old company has struggled in recent years because Americans are drinking less cows milk
https://edition.cnn.com/2019/11/12/b...tcy/index.html
Dean Foods has struggled for years. One big challenge in the US liquid milk market has been the big drop in breakfast cereal consumption, replaced by instant breakfasts that don't need milk. Mitigating this is the rise in out of home dairy consumption eg Starbucks(milk&cream), burgers(cheese), pizza (mozza) etc etc. But this is no help if you are stuck with a complex cold chain set up to deliver liquid milk to families via supermarkets.
chinese mengnui snapping up australian dairy assets. just purchased ballamys now Kirin to sell Australian dairy unit to Mengniu
So we got 2 major chinese dairy companies 1 in NZ and another in australia obviously looking to become leaders in the space
https://asia.nikkei.com/Business/Bus...has%20learned.
good to see this move
Fonterra pays $30m for almost full control of Chilean milk processor
https://www.newsroom.co.nz/2019/12/1...milk-processor
Crazy world good for Fonterra
https://www.reuters.com/article/us-h...-idUSKBN21L1DW
Cheese & milk demand up over 50%
https://finance.yahoo.com/news/how-t...200718960.html
Chinese Gvt food guidelines
https://www.foodnavigator-asia.com/A...ne-resistance#
Not a huge increase.....but not down either. And volumes OK
https://www.nzherald.co.nz/business/...ectid=12323370
"Dairy prices lift for first in five auctions"
Combined with an attractive exchange rate...got to be good news for Fonterra etc.
Solid performance of Fonterra despite Covid19.
Annual Results Summary
• Final cash payout for 2019/20 season: $7.19 per kgMS
o Final 2019/20 Farmgate Milk Price: $7.14 per kgMS
o 2019/20 dividend: 5 cents per share
• Reported Profit After Tax: $659 million, up $1.3 billion
• Normalised Profit After Tax*: $382 million, up $118 million
• Total Group Earnings Before Interest and Tax (EBIT): $1.1 billion, up $1.2 billion
• Total Group normalised EBIT: $879 million, up $67 million
• Total Group normalised gross profit: $3.2 billion, up $200 million
• Total Group normalised operating expenses: $2.3 billion, down $14 million
• Free cash flow: $1.8 billion, up $733 million
• Net debt**: $4.7 billion, down $1.1 billion
• Debt to EBITDA ratio: 3.4x improved from 4.4x
• Full year normalised earnings per share: 24 cents
• 2020/21 forecast Farmgate Milk Price range: $5.90 - $6.90 per kgMS. Mid-point of $6.40 per kgMS
• 2020/21 forecast earnings: 20 – 35 cents per share