sharetrader
Page 2 of 13 FirstFirst 12345612 ... LastLast
Results 21 to 40 of 259

Thread: Fonterra

  1. #21
    Member
    Join Date
    Nov 2001
    Location
    Te Puke, , New Zealand.
    Posts
    345

    Default

    Ok it has to be said but well done Fonterra. When the price was low they were criticized for stockpiling and buying up coolstore space all over country. Now the results of that have become apparent and they have done a good job despite the global crisis. This is a good result especially since the Euro welfare farmers are still going spastic about the low prices.

  2. #22
    Senior Member
    Join Date
    Jun 2003
    Location
    , New Zealand.
    Posts
    580

    Default

    Quote Originally Posted by Nevl View Post
    Ok it has to be said but well done Fonterra. When the price was low they were criticized for stockpiling and buying up coolstore space all over country. Now the results of that have become apparent and they have done a good job despite the global crisis. This is a good result especially since the Euro welfare farmers are still going spastic about the low prices.
    Increasing the payout from $5.10 to $6.10 while the NZD has gone up 40%+ is a good outcome.

  3. #23
    Member
    Join Date
    Nov 2001
    Location
    Te Puke, , New Zealand.
    Posts
    345

    Default

    Quote Originally Posted by Anna Naum View Post
    Increasing the payout from $5.10 to $6.10 while the NZD has gone up 40%+ is a good outcome.
    I think the big chance they took to take stock off the market in MArch and April to sell to the Chinese and other markets now has really paid off. I have a friend who made $500mill for JP Morgan by leasing oil tankers and storing oil when it was at $35. Fonterra seems to have done the same thing. An extra 1Bill for NZ is great and will make a huge difference in these times as Farmers have also had a good season. Still I think more than a few farmers will be paying down the mortage. As interest rates are forecast to go up next year and its a good time to be ready to pare debt before that happens.

  4. #24
    Guru
    Join Date
    Feb 2005
    Location
    Auckland
    Posts
    3,167

    Default

    Agree with Nevl - most of the extra payout will go straight onto the mortgage so the flow on effect for the rest of the country won't be as great as other years. The banks may even enforce it!
    Free delivery worldwide with Book Depository http://www.bookdepository.co.uk

  5. #25
    Member
    Join Date
    Oct 2009
    Location
    New Plymouth
    Posts
    190

    Default

    Farmers can't not spend for ever. Don't forget theyve been doing that already for the last 12 months. Plenty of money will be going on fertiliser and feed, and any equipment that needs replacing will be replaced. MORTGAGE will be paid down, but some essential spending will be made now as well.

    Also interesting to note as this is a discussion about about a proposed share float, that if we were indeed fonterra shareholders we would be absolutely disgusted with this result. Earnings guidence down from 55 cents per share at the start of the year to 35 cents now. Fonterras latest recapitalisation plans priced their shares at a divedend yield of 12% this announcement represents a yield of closer to 8% so makes that looks less attractive too. They need to find ways to maintain their margins if they are to be a long term success story.

  6. #26
    Guru
    Join Date
    Feb 2005
    Location
    Auckland
    Posts
    3,167

    Default

    Quote Originally Posted by Doyle View Post
    Plenty of money will be going on fertiliser and feed,
    That money would have been spent anyway. My guess is a lot of banks wont let them take the cash out once the payout goes in (ie. to get their LVR to a more respectable number after farm values have fallen)..
    Free delivery worldwide with Book Depository http://www.bookdepository.co.uk

  7. #27
    Senior Member
    Join Date
    Mar 2001
    Location
    Auckland, , New Zealand.
    Posts
    1,327

    Question Dumb question time from a non rural person

    How do these payouts work.

    Are what they are saying that this is expected to be the average price /payout over the year.
    As the price keeps changing, Now i'm sure the farmers do not get paid out once at the end of the year??

  8. #28
    Member
    Join Date
    Nov 2009
    Posts
    37

    Default

    Jay you are correct. Farmers definitely don't get paid out once at the end of the year. This would just create even more working capital issues for farmers.

    My basic understanding is that they get paid out monthly on their production, however, since farmers don't produce all year round they don't recieve the 'full milk payout' but only a portion of this. I think this is why you hear them talking about the final payout at the end of the season and how much 'extra' or 'less' they will get in the next few dry months when they aren't producing.

    I would be happy to be corrected if I'm wrong, I only have a very basic understanding.

  9. #29
    Member
    Join Date
    Nov 2001
    Location
    Te Puke, , New Zealand.
    Posts
    345

    Default

    Quote Originally Posted by Jay View Post
    How do these payouts work.

    Are what they are saying that this is expected to be the average price /payout over the year.
    As the price keeps changing, Now i'm sure the farmers do not get paid out once at the end of the year??
    Basically Fonterra tries to estimate what will be paid out at the end of the year and starts making progress payments towards this amount. As the year develops they can on occasion change the payout forecast as they did earlier this year when they dropped it to $4.55. Since then of course markets have improved and now they have better data and more of the years supply has being sold and cash brought back to NZ and they are updating farmers on what the full years payout will likely be. As the year goes on the estimates will get better naturally. They try to provide as much detail as possible so farmers can hopefully manage farm expenditiure so that it matches income and preserve working capital.

  10. #30
    Senior Member
    Join Date
    Mar 2001
    Location
    Auckland, , New Zealand.
    Posts
    1,327

    Default

    Thanks Nevl and Turboman, thought it must be something like that, but was never really sure

  11. #31
    Member
    Join Date
    Nov 2001
    Location
    Te Puke, , New Zealand.
    Posts
    345

    Default

    Heard on the news that the payout is on the 20th of each month and this final payout will be made on Dec 20th!! Should be good for the Xmas sales.

  12. #32
    Senior Member upside_umop's Avatar
    Join Date
    Jun 2007
    Location
    London, United Kingdom
    Posts
    1,237

    Default

    I see a few articles out and about re Natural Dairy Holdings Ltd.

    Heres an article today...who thinks the sale will go through?

    http://www.stuff.co.nz/business/farm...uyers-outraged

    Personally, I'd rather it didnt. Although, dairy farm values seem relatively overvalued and nothing wrong with the Chinese taking a hit.

    There appears to be a bit of a mistake in the figures?

    'The sale represents 0.003% of NZ dairy cattle in NZ.'

    Lets have a look at this, and assume that this is the average dairy farm in NZ...therefore, the sale would represent around 0.003% of NZ's total dairy farm value.

    The sale is around $200 million...therefore, does NZ have $6.6 trillion dollars worth of dairy farms in NZ (~40 x NZ's GDP)? Calc = (1/0.003)x100x$200,000,000

    We most certainly dont!!

    I suspect this article is a little misleading (either that, or they believed everything MR CHIN said). Its probably out by a factor of 10/100 who knows...even still, misleading. Statistics are what makes articles relevant, and this certainly doesnt portray a relevant story.

  13. #33
    Guru Dr_Who's Avatar
    Join Date
    Aug 2007
    Posts
    3,387

    Default

    Fonterra and other NZ entities have dairy farm interest in China and other parts of the world, so what reasons can we give the Chinese that they cant buy the farms in NZ? Abit hypocritical of us.
    Having got ourselves into a debt-induced economic crisis, the only permanent way out is to reduce the debt either directly by abolishing large slabs of it, or indirectly by inflating it away.

  14. #34
    Adventurer Silverlight's Avatar
    Join Date
    Dec 2009
    Posts
    513

    Default

    I think you have mis read the information.

    0.003% of cattle, not value.

    Crafer also owned 22 farms, with 20k cows.

    The purchase is only for 16 of those farms, so say that was 15k cattle, means that they are estimating 5m cattle in NZ? Does this seem more accurate?
    ~ * ~ De Peones a Reinas ~ * ~

  15. #35
    Senior Member upside_umop's Avatar
    Join Date
    Jun 2007
    Location
    London, United Kingdom
    Posts
    1,237

    Default

    I know what the information said.

    I'm saying, assume these are average size dairy farms then they will be approximately equal to 0.003% of the farm value in NZ?

    I didnt know the number of cows crafar had, so this makes it easier:

    According to Chin, we have 500 million cows. Same calc: 1/.003*100*15000 = 500,000,000

    So this confirms, their data is out by a factor of 100. (Approx 5 million cows in NZ).

    The sale represents 0.3% of NZ farms...which is relatively significant, IMO.

  16. #36
    Senior Member upside_umop's Avatar
    Join Date
    Jun 2007
    Location
    London, United Kingdom
    Posts
    1,237

    Default

    Quote Originally Posted by Dr_Who View Post
    Fonterra and other NZ entities have dairy farm interest in China and other parts of the world, so what reasons can we give the Chinese that they cant buy the farms in NZ? Abit hypocritical of us.
    They only allow 50% ownership in China in most cases. Here they want to buy outright, and control the supply chain. I guess it comes down to whether the Chinese could tarnish NZ's look and therefore our 'premium' product?

  17. #37
    Guru Dr_Who's Avatar
    Join Date
    Aug 2007
    Posts
    3,387

    Default

    Quote Originally Posted by upside_umop View Post
    They only allow 50% ownership in China in most cases. Here they want to buy outright, and control the supply chain. I guess it comes down to whether the Chinese could tarnish NZ's look and therefore our 'premium' product?
    Fair comment. Maybe we can structure it in a way that will have a win/win situation. Our rural sector is starving of capital.
    Having got ourselves into a debt-induced economic crisis, the only permanent way out is to reduce the debt either directly by abolishing large slabs of it, or indirectly by inflating it away.

  18. #38
    Member moimoi's Avatar
    Join Date
    Feb 2000
    Posts
    492

    Default

    why are they even being sold....the government provided a guarantee to the banks to enable them to raise funds offshore and continue business...why doesn't the same governement provide a guarantee to the existing crafars farms lenders, install managers and press on with operating the farms...alternatively it could turn the lot of them into a training institute of sorts and train young would be farmers up on the skills needed...are we not supposed to be supporting NZ industry and enterprise.?

    there is plenty of folk out of work...someone i know had a job interview yesterday for a part time administration job offering 9 hours employment per week. There are 250 applicants.!!

    The banks got looked after..how about NZ industry??

  19. #39
    Senior Member
    Join Date
    Jun 2008
    Posts
    690

    Default

    The government already owns a big farm manager, LandCorp but why should it buy these farms?

    They are marginal dairy farms for the most part, we aren't selling Matamata or Hawea here! My bet would be the Chinese learn a hard lesson on this one and exit New Zealand after losing their shirts. They seem to have no farming experience or even any backing, they are simply selling a dream to Hong Kong shareholders. Or put another way, would GPG or maybe Fay Richwhite have made NZFSU better or worse than PGW?!?

    Personally I liked Chris Lee's idea of SCF folding dairy holdings into the Crafar farms and listing at least part of it on the stock exchange. NZFSNZ anyone?

  20. #40
    percy
    Join Date
    Oct 2009
    Location
    christchurch
    Posts
    14,801

    Default

    Quote Originally Posted by Dr_Who View Post
    Fair comment. Maybe we can structure it in a way that will have a win/win situation. Our rural sector is starving of capital.
    Would be good if we could structure that way.As you point out win/win situation.

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •