Which was then. BTW I worked for a producer co-op for several years and do know a bit about them.
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Mitre 10 seem to do very well being a co-op ....giving that ginat Aussie corporate with deep pockets a real run for their money
And aren't Foodstuffs are co-op or two as well ....another Aussie giant corporate with deep pockets took over Foodstuffs main competitor are few years ago and sated they would kick Foodstuffs into touch and bury them. I believe that Foodstuffs are still bigger than that Aussie in NZ
Always be wary of positive headlines
Forecast Farmgate Milk Price Increase and Earnings Revision
Of course earnings revision was down eh ........and divie as well .....as they said a bit disappointing
https://www.nzx.com/announcements/318327
Previous dividend guidance not that long was 25-35 cents
Today 15-20 cents
That’s a pretty big revision eh
Things change quickly in the dairy world eh
just goes to show there move to high value is not smoothing results , obviously not working properly
This was kind of expected I thought? The half year report was saying how their Value Add/Food and Service business was struggling because milkfats are a key input of that business.. and they are remaining at like record highs in the GDT - huge COGS!
- Gypsy day coming up. Will farmers think about moving away from Fonterra to the likes of SML and OCD? If so, they will want to sell their FSF/FCG shares to free-up their capital right? Who will buy their shares if other Fonterra farmers don't need the shares because we are at peak milk?
- High milk price is bad for the share price and good for farmers. Last time the opening forecast was $7, the season ended at $4.40 so anything can happen.
- Nice bribe to retain farmers at the $7 milk price forecast, at a $5.40 breakeven price (which already includes a farmer salary/drawings+interest+tax) and with the average farmer having like 414 cows which produce 416 kgMS each = 172,000 kgMS per season * difference between breakeven and farmgate of $1.35, that a nice little cash return to put towards debt repayment and to spend on the environment mgmt. plan.
Pretty scathing view from FNZC: https://www.nzherald.co.nz/business/...ectid=12060004
Happy not to be a holder of this one.
For those wanting an intro in this stock, I highly recommend reading Page 24-31 of the latest ANZ Agri update:
https://www.anz.co.nz/resources/7/1/...df?MOD=AJPERES
Couldn't write it better myself
https://www.nzherald.co.nz/business/...ectid=12075231
hope the bright sparks dont think fonterra should go back to only a milk producer? duh anyone can be a commodity supplier. Also breaking up company would be bad to , do agree needs more capital for the brands business so why not float 49% of the brands business and keep control.