boh, You really don't know the genesis of the Co-op model, Co-ops started when there was NO capital for ANYTHING in N Z so "interested ": parties had to band together to make things happen/possible thus the Co-op ( co-operative ) was born.
Which was then. BTW I worked for a producer co-op for several years and do know a bit about them.
boh, You really don't know the genesis of the Co-op model, Co-ops started when there was NO capital for ANYTHING in N Z so "interested ": parties had to band together to make things happen/possible thus the Co-op ( co-operative ) was born.
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
At the top of every bubble, everyone is convinced it's not yet a bubble.
Fonterra should never have been allowed to be a " co-operative" they are relics of a failed socialist past. The mere fact the farmers still support this form of ownership speaks volumes on their lack of business acumen. Kiwis deserve much better, Fonterra affects the wellbeing of everyone and it does need to be professionally governed. I would also like to know who had the responsibility of doing the due diligence on buying into Beingmate and what are the consequences. I also want to know and have publically published the reasoning for not buying into A2 five years ago. I and other A2 shareholders saw the potential, why didn't the farmers on the Fonterra board. They should be sacked.
Be thankful that Fonterra did not invest in ATM - they would have stuffed the company up.
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.
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.
Originally Posted by whatsup
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