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VG87
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fonterra


So what do people think about Fonterra's unfortunate infant milk powder contamination? According to news reports here in NZ its massive news around the world. And so it should be. A slip up like that has the potential to devastate the NZ economy. After 25% of GDP is dairy. Let alone the potential harm it could cause to users of the products. Interesting to see the Fonterra Sharholders fund share price dropped nearly 15% right away. What are peoples opinions?
6/8/2013, 2:23 Link to this post PM via Email   PM via Forum
 
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GP83
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Re: fonterra


I think if it hadn't come after the truly massive contaminated milk scandal from Chinese milk which both killed babies and made more than a quarter of a million ill, i suspect it would have barely have been noticed, especially as Fonterra are saying they are not aware of anyone falling ill from it.

However, as it is I think this could lead to a bit of trouble for Fonterra. Their auction is today so will watch with interest. The reaction in the first month is likely to be by far the most severe. It might check NZ milk expansion plans for another year which should support milk prices in the EU at their current level and maybe even enhance going into winter. I think it's possible we will see non-NZ milk trading at a small premium, but it's hard to say how long that might last.
6/8/2013, 9:45 Link to this post PM via Email   PM via Forum
 
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Ex97
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Re: fonterra


Considering the argybargy ,checks and tests our on farm milk goes thru it is a tad disgraceful that product passed thru a dirty pipe should have been let go thru the system and let go as long as it has before warning bells went.
Where are the manufactorers checks and tests?
6/8/2013, 13:31 Link to this post PM via Email   PM via Forum
 
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EX93
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Re: fonterra


Especially so , when the suspect stuff was manufactured quite some time ago. Fortunately the effect on the latest auction seems comparitively benign.
6/8/2013, 22:37 Link to this post PM via Email   PM via Forum
 
DownCows Profile
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GP83
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Re: fonterra


Does seem to have been a more limited impact than I had earlier thought. Of course we don't know what the auction performance would have been without this scandal, and in the last three auctions there had been price increases - which could mean the 2.4% drop is a bit bigger than the headline suggests, but even so I imagine there are some sighs of relief in NZ.

Not least Fonterra management who must be aware that their members will feel very disappointed.
7/8/2013, 0:12 Link to this post PM via Email   PM via Forum
 
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VG87
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Re: fonterra


I dont think fonterra farmer shareholders are the only ones that feel let down. i think most people realise what something like this could mean for nz as a whole. The govt sure was quick to jum,p in
7/8/2013, 2:40 Link to this post PM via Email   PM via Forum
 
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Ex97
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Re: fonterra


It was perhaps noteworthy that butter had a bigger correction than the powders, which might suggest that the effect was small. While it might seem at first glance that an opportunity would be created for European powders, would it not be the case that as one door opens, another one closes in that NZ product will have to be sold onto other markets that Europeans are already in, pressuring the prices there? What will likely be the result is everyone's product being displaced from their regular market, and extra transport being added on. Hopefully the scare doesn't knock chinese consumption like it did the last time, which would be very worrying.



Last edited by FiringOnAllFour, 7/8/2013, 11:16
7/8/2013, 11:14 Link to this post PM via Email   PM via Forum
 
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EX95
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Re: fonterra


To be honest I wouldn't blame the Chinese if consumption drops. Disgrace I think from fonterra
7/8/2013, 15:41 Link to this post PM via Email   PM via Forum
 
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EX93
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Re: fonterra


We are continually told that the Chinese market will be the saviour of the world dairying industry.

I just don`t think that anything is that reliable.
7/8/2013, 23:39 Link to this post PM via Email   PM via Forum
 
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Ex 97 2E
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Re: fonterra


quote:

holsteins wrote:

To be honest I wouldn't blame the Chinese if consumption drops. Disgrace I think from fonterra



Exactly.

What they hell are they doing. Fonterra are always quick to promote the clean green NZ image. Yeah real clean. Stuff like this is bad for the whole diary industry.
9/8/2013, 10:15 Link to this post PM via Email   PM via Forum
 


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