Category Archives: Fonterra

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 | 4 Comments

Fonterra has three alternatives for its China Farms and none are attractive

This is the second part of a two-part series putting Fonterra’s China Farms under scrutiny. The first part is here In the preceding article I traced the internal thinking within Fonterra as to why Fonterra decided to produce milk in … Continue reading

Posted in China, Dairy, Fonterra | 7 Comments

Fonterra’s China Farms are a target for asset sales

This is the first of a two-part series putting Fonterra’s China Farms under scrutiny. In this first part, the focus is on the origins of how Fonterra managed to entrap itself in its loss-making China Farms project. Fonterra’s new leadership … Continue reading

Posted in Agribusiness, China, Dairy, Fonterra | 3 Comments

Dairy co-operatives struggle without retained earnings

Currently there are three dairy co-operatives in New Zealand – Fonterra, Westland and Tatua.  The first two are struggling for capital, whereas the third, the tiny Tatua, has been an ongoing success story of prosperity. The essence of the difference … Continue reading

Posted in Dairy, Fonterra | 1 Comment

Scratching beneath the surface of Fonterra’s accounts

[This article is published today at interest.co.nz and is forthcoming in Farmers Weekly] Fonterra’s loss of $196 million for the year ended 31 July 2018 has left nowhere for the Fonterra Board to hide. Wisely, it has chosen to take … Continue reading

Posted in Dairy, Fonterra, Uncategorized | 10 Comments

Why is Fonterra so bad at international ventures?

Fonterra’s recently appointed Chair John Monaghan, in announcing the appointment of interim CEO Miles Hurrell, said that Fonterra wants to pause and reassess the way ahead.  This could be a breath of fresh air.  It needs to be a wind … Continue reading

Posted in Agribusiness, China, Dairy, Fonterra | 3 Comments