FONTERRA

Fonterra structure no impediment

by Brian Cloughley

Despite recent commentary to the contrary, Fonterra’s evolving co-operative structure is both a source of significant strength and compatible with its seemingly disparate goals of maximising both Milk Price and profit.

More significantly Fonterra’s structure gives it a competitive advantage in the international market place where the bulk of its products are sold. As an industry, we forget that at our peril.

Fonterra's message to its suppliers

On Wednesday, 10 December 2014 8:44 AM, John Wilson <JohnS.Wilson@info.fonterra.com> wrote:

 

Good morning

Fonterra profit down, but not out

Fonterra, which controls about one-third of world dairy exports, unveiled a 53% drop to NZ$217m in earnings for the six months to the end of November 2013

Why are Fonterra shares worth over $6?

An interesting piece today from Craigs Investment Partners on the value of Fonterra shares.  As shown below, their target price is $5.51 per share; the current price is $6.17 per share.

$7 payout announcement from Fonterra.

 

29 May 2013 

FONTERRA ANNOUNCES OPENING FORECAST FARMGATE MILK PRICE
FOR NEW SEASON

MyFarm pleased with TAF outcome

On Monday Fonterra shareholders gave the green light for Trading Amongst Farmers.  It wasn't a slam dunk - in fact much below the 66% vote in support and the Board of Directors would have struggled to claim a mandate for this policy.  As it is there is one out of three shareholders that didn't agree with it.  Some fence repairs will be required from the Board.  Taking proposed capital restructuring off the table for at least the next five years would be a good start.