Fonterra Shareholders Fund

[Beagle]

I recon you guys should boycott the milk at the supper market and drive to your nearest dairy farm.At the present payout you can buy from the source at about 90cents for two liters .It might cost ten bucks worth of fuel but that darn fonterra will miss out.

This sort of thing must surely be happening already in rural area's for those who know the right dairy farmers.... what with supermarkets charging 500% more for the big name brand with the fancy light proof packaging.

[Sideshow Bob]

I think the price of milk isn't coming down so much, because it didn't rise so much when they were farmers $8/kg MS. I think a lot of the problems is retailers. How often do they have coke as a loss leader, compared to having milk? Also, a guy who use to work for Fonterror said on average supermarkets turn over the 56 times before they pay for the milk from the 1st stocking. There is also a good margin.

After driving past the 2 x 2L for $7 sign at the local petrol station, it was observed the milk was cheaper there than the local Pak N Save 4km away, but Pak N Save has cheaper petrol......

[Beagle]

I think the price of milk isn't coming down so much, because it didn't rise so much when they were farmers $8/kg MS. I think a lot of the problems is retailers. How often do they have coke as a loss leader, compared to having milk? Also, a guy who use to work for Fonterror said on average supermarkets turn over the 56 times before they pay for the milk from the 1st stocking. There is also a good margin.

After driving past the 2 x 2L for $7 sign at the local petrol station, it was observed the milk was cheaper there than the local Pak N Save 4km away, but Pak N Save has cheaper petrol......

If you ever needed proof life is full of ironies there it is.

[BFG]

Fonterra a buy?

http://www.odt.co.nz/news/business/3...out-cut-likely

[theace]

In light of today's announcement, what are your thoughts on a good entry price? (for a long term hold)

[winner69]

Half year result was a bit of a shocker and a surprise to many. There was no indication things were quite this bad with the mighty Fonterra

Shareholders cant be happy as price sinks to an all time low and farmers seemed more than peeved about a likely haircut on their divie as well as the lower farmgate price

Guidance divie 20-30 cents, that seems a big range but probably better than coming out with 20 cents now. They can always say at the lower end of guidance now when they do.

Anything can happen now by the looks of it ..... their forecasting is **** and when this happens things tend to get worse before they get better

[peat]

what Im struggling with is that unitholders seemed to miss out when the milk price was high , and now when its low they're missing out again.

[xafalcon]

F15 H1 profit down compared to F14 H1, but F15 interim dividend up on F14......

Check out H1 EPS for F14 v's F15. Completely different strategy.

Goes nicely with the contradictory info the directors fed out regarding the inverse relationship between value-add dividend and milkpowder pricing. Just smoke and mirrors

Seems the farmers get hammered either way

[macduffy]

Fonterra, basically, is a dairy farmers' co-operative. Not a great investment for other investors, IMO.

[Harvey Specter]

what Im struggling with is that unitholders seemed to miss out when the milk price was high , and now when its low they're missing out again.

Seems the farmers get hammered either way

Haha. Seems they can't please anyone.