Category Archives: Fonterra

Is there a future for Oz Fonterra as Fonterra’s finances unravel?

Fonterra’s announcement that it expects a loss of around $600 million or more for the year ended 31 July 2019 has big ramifications for Oz Fonterra.  With overseas-milk pools now lying outside the central focus of Fonterra’s new strategy, and … Continue reading

Posted in Dairy, Fonterra | 6 Comments

Fonterra’s losses provide more questions than answers

The forthcoming asset write downs of more than $800 million announced on 12 August by Chairman John Monaghan are clearly damaging to Fonterra’s balance sheet. It also means that Fonterra will now make a loss for the year of around … Continue reading

Posted in Dairy, Fonterra | 2 Comments

Uncertainty plus unique ownership structure drive Fonterra share volatility

Fonterra’s shares have been on a steady downward slide for the last 18 months. In January 2018 they were selling at $6.60 dropping to $3.86 at closing on 30 June 2019. Then this last week things suddenly turned volatile, dropping … Continue reading

Posted in Dairy, Fonterra | 2 Comments

DIRA review nibbles at the status quo and avoids the big questions

The current review of the Dairy Industry Restructuring Act (DIRA) does not address the big decisions that face the New Zealand dairy industry. That may well be a wise decision by Government. Big decisions will indeed be necessary over the … Continue reading

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Fonterra’s strategic reset is up against headwinds.

Fonterra’s Q3 results for 2018/19 show that Fonterra is running into headwinds with its strategic reset. That is not to suggest the current policy is necessarily flawed. Rather, it reflects the pickle that Fonterra has got itself into in recent … Continue reading

Posted in Agribusiness, Dairy, Fonterra | Leave a comment

Fonterra’s strategic reset interacts with new Board dynamics.

Fonterra’s December update shows that the strategic reset is under way, albeit at an early stage. Key indicators include that the Beingmate JV is being unwound and that Fonterra’s China Farms are under heightened scrutiny. The big shock is that … Continue reading

Posted in A1 and A2 milk, China, Fonterra | 5 Comments

A2 becomes a global dairy disruptor

A2 dairy products are now mainstreaming on a global platform.  In marketing parlance, A2 is becoming an industry disruptor. A2 dairy products are characterised by being free of A1 beta-casein.  Instead, all of the beta-casein is of the A2 type.  … Continue reading

Posted in A1 and A2 milk, Agribusiness, China, Dairy, Fonterra, Synlait | 7 Comments