I guess he got the news from his wife
Printable View
I guess he got the news from his wife
Hi blobbles,
According to the news here, China bans "all whey protein and milk-based powder sourced from Fonterra, whether exported from New Zealand or Australia". Where did you get the information saying "China banning all dairy products from New Zealand"?
Geez that is terrible. I guess there is not much demand for NZ stocks across the ditch. Vice versa its a different story. We get commision (internet broker) of $29 AUD on stocks bought in australia and can settle in NZd or AUD.
But to keep on topic, this stock may well benefit longer term from the fallout. Tis interesting to see that the exposure A2 has in NZ is so low. I cannot find it anywhere (wellington area) but hear from friends in Australia that its all the rage there.
Sorry, yes for accuracy this was taken from Western media... I will go have a look at the Chinese sites...
It does appear some western sites are sensationalising it a bit, according to the Chinese government main portal though there are certain sets of milk powder which are affected and being recalled according to the official site. You can find the information from the Chinese government website:
http://www.gov.cn/
If you do a search for New Zealand (新西兰) you can find the link to this:
here: http://www.gov.cn/gzdt/2013-08/04/content_2460949.htm
Which translated roughly says "The quarantine and inspection agency of China has received word from the NZ government departments of a recall of 3 batches of Nutricia Karicare infant formula (then lists them and how to check the batch number). Consumers should not be feeding their babies with the products indicated. The recall does not involve an other companies products. This decision is based on advice received by Fonterra on the night of August the 3rd. Fonterra said a batch of raw materials used to produce the milk powder may be contaminated so in a preventative measure is recalling these goods. The General Administration of Quality Supervision, Inspection and Quarantine (the agency in China doing the inspections and action on this) says something like (I aren't 100% clear on this, my Chinese isn't that good!) the product is not imported in the normal way? Seems a strange thing to say but yeah.
After that, it appears it should only affect these fonterra goods, so bag a bargain in ATM I say!
Western news is reporting it to be worse than it is, like:
http://www.bbc.co.uk/news/world-asia-23565651
http://www.radionz.co.nz/news/dairy2...-milk-products
Note that I can't find anything about a blanket ban on NZ milk powder on the Chinese sites. This does not mean it isn't happening, it could be happening and not being reported on the Chinese side, which is very common.
This is my opinion:
I suspect more accurate information about what is being banned will come out from the west before it comes from China, so its entirely possible all milk powder goods are being stopped at the border and/or have been banned for a set amount of time as punishment (classic Chinese tactic!). This is likely being pushed to include as many products as possible from elements inside China, the milk industry here who has been getting a beating (rightly so) for being ridiculously unsafe.
Nice to see some buyers getting a discount and good to see the market returning the share price to where it finished last week.
A serious situation for Fonterra but the Media does love to beat these things up. Good to see the market not over reacting.
Absolutely, has been a good opportunity for new investors to enter today also, congratulations if you picked up some of the 1.5M shares traded earlier today, welcome aboard.
My understanding is that ATM start selling their baby formula to China next month, it appears they have been tainted by Fonterra.
Ok, I should have disclosed that I am a Chinese living in NZ. So reading either Chinese or English news is not a problem for me.
From what I read, I dont think China bans all dairy products from New Zealand. The Chinese government link you gave above is just a kind of warning and it seems you misread it. The real content in that statement is warning that Nutricia recalls 3 batches of Nutricia Karicare infant formula which are selling in NZ market. The part which you aren't 100% sure about is just saying people should avoid those 3 batches of formula if they bought them from other sources (because those 3 batches aren't selling in China officially). Nutricia's Chinese official website still sells Nutricia Karicare infant formulas with a statement saying "product recall - New Zealand only" . If you can read both Chinese news and English news you will find all news are bull**** sometimes although the western media do have a bit more credibility than the Chinese one.
And I dont think the Chinese government is over-reacted. Dont you think that is what a government should do? Especially when you consider that the Fonterra claimed only stage 1 is affected at first but now stage 2 is recalled as well. Who knows what else could happen? At this stage, my relatives in China do switch to the infant formula made in Dutch temporarily.
This event could hurt Fonterra but it should be fine from the long-term perspective. There are no illness or death reported after all.