still confused on there strategy? except the part about we must reduce our debt
Yup.
'Portfolio review' - buzz words for asset sales to reduce debts (forced usually by banks) and for getting rid of all the bad investments made by Fonterra and booking hundreds of millions of losses as they are gotten rid off, with accumulated losses on investments now well in excess of $1 billion! Latest being the $126m to be written off on the sale on Inlaca.
'Getting back to basics' - buzz words for running out of ideas so best to concentrate on milking cows and New Zealanders!
Can be sure in 5 years' time that Fonterra will be back with a 'new' strategy of getting into consumer end products to enhance margins - back to the future!
'Portfolio review' - buzz words for asset sales to reduce debts (forced usually by banks) and for getting rid of all the bad investments made by Fonterra and booking hundreds of millions of losses as they are gotten rid off, with accumulated losses on investments now well in excess of $1 billion! Latest being the $126m to be written off on the sale on Inlaca.
'Getting back to basics' - buzz words for running out of ideas so best to concentrate on milking cows and New Zealanders!
Can be sure in 5 years' time that Fonterra will be back with a 'new' strategy of getting into consumer end products to enhance margins - back to the future!
ceo just on cnbc all they talked about was pretty much debt reduction , so there strategy is debt reduction lol for this yr maybe next yr ? really a company going backwards for the fore seeable future i see.
fundamentally the company is flawed , with there structure. if floated some of the business they could reduce debt. lol obviously difficult for them farmers to understand
lol i dont know how much time is needed but the world is changing quickly and fonterra and its old dinosaurs who only see milking cows as the future are on a path to oblivion.
Meanwhile, reduced demand for cow’s milk and falling prices led to the closure of 1,000 dairy farms in the UK between 2013 and 2016. Milk’s reputation as a healthy food is under threat from anxieties about bovine antibiotics, animal cruelty and the industry’s environmental impact, as well as increased diagnosis of lactose intolerance. Teenagers now consider cow’s milk less healthy than plant milk alternatives,
White gold: the unstoppable rise of alternative milks
yrs ago people were in up roar about farm land being brought up by foreigners , we dont want to be peasants on our land they said. now foreigners have become more crafty ( smarter than us lol ) they instead buy up businesses so badly run and debt ridden (seems this is a big problem in nz) they have no choice but to sell. guess what people you still end up being peasants on your land one day as business owners will dictate the price you receive.
i see a smart strategy at play from competitors ( probably fantasy lol ) strategy says competition is big company reliant on 1 big customer , take out the smaller operators and set up new businesses , set up your supply chains. 1 day restrict supply of your big competition while your champions continue to supply, capture market share from big competition unable to sell all goods because you can. eventually you will control the market.
or alternative just watch them self destruct lol and take supply
another dairy company on the verge of biting the dust
Investors are betting there’s no easy fix for Dean Foods Co., with the top U.S. dairy company’s bonds sinking deeper into distressed territory amid a long-term decline in American milk demand.
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