Fonterra
-
So you turn over $19.2b a year and can't make a cent....
Maybe fair enough but what grates me with this is that the interim CE comes out and says it was due to poor forecasting (Forecasting doesn't determine result it is a stake in the ground at a point of time) and worse that Butter prices are too high........... Sorry? Don't you sell the stuff? Isn't that what you want when selling global commodities, high prices and weak NZ dollar... especially when you sell in USD?
Then the media bang on about salaries etc which to me is irrelevant when losing more than $200m.
Surely that board all has to go and the shareholders council which have become a lapdog rather than watchdog (which is a description I heard recently)
My mate is stoked with his timing as he just went to Open Country Dairy this season so he could free up equity to buy an engineering firm. Had he waited he would have been ~$250k worse off due to the share value falling.
Am I missing something with the butter price being too high?
-
-
@ploughboy said in Fonterra:
@hooroo
fonterra is setup for protein (wholemilk powder)not fat (butter)
does surprise me what payout is seeing they are running at a loss, Must have something to do with the milk price manualYes, I get that, as I used to be a management accountant for them. But they still sell butter. It's not as if SMP and WMP are low and with the NZD a bit hopeless against USD, they should still be creaming it......
-
@ploughboy said in Fonterra:
@hooroo
fonterra is setup for protein (wholemilk powder)not fat (butter)
does surprise me what payout is seeing they are running at a loss, Must have something to do with the milk price manualYes, I get that, as I used to be a management accountant for them. But they still sell butter. It's not as if SMP and WMP are low and with the NZD a bit hopeless against USD, they should still be creaming it......
You're a bean counter? All this time I had no idea. HFA.
-
@ploughboy said in Fonterra:
@hooroo
fonterra is setup for protein (wholemilk powder)not fat (butter)
does surprise me what payout is seeing they are running at a loss, Must have something to do with the milk price manualYes, I get that, as I used to be a management accountant for them. But they still sell butter. It's not as if SMP and WMP are low and with the NZD a bit hopeless against USD, they should still be creaming it......
You're a bean counter? All this time I had no idea. HFA.
It's not hard to be one. It's like money for dummies that can't become engineers/doctors etc....
HFA?
-
@ploughboy said in Fonterra:
@hooroo
fonterra is setup for protein (wholemilk powder)not fat (butter)
does surprise me what payout is seeing they are running at a loss, Must have something to do with the milk price manualYes, I get that, as I used to be a management accountant for them. But they still sell butter. It's not as if SMP and WMP are low and with the NZD a bit hopeless against USD, they should still be creaming it......
You're a bean counter? All this time I had no idea. HFA.
It's not hard to be one. It's like money for dummies that can't become engineers/doctors etc....
HFA?
I agree, I tell my multitude of accountant friends that all the time.
Hooroo from Accounts
-
-
@ploughboy said in Fonterra:
@hooroo
fonterra is setup for protein (wholemilk powder)not fat (butter)
does surprise me what payout is seeing they are running at a loss, Must have something to do with the milk price manualYes, I get that, as I used to be a management accountant for them. But they still sell butter. It's not as if SMP and WMP are low and with the NZD a bit hopeless against USD, they should still be creaming it......
You're a bean counter? All this time I had no idea. HFA.
It's not hard to be one. It's like money for dummies that can't become engineers/doctors etc....
HFA?
I agree, I tell my multitude of accountant friends that all the time.
Hooroo from Accounts
That's the key, trick the young ones into thinking it is tough and hard work and that way there is a supply shortage in NZ and you can name a price.
-
@ploughboy said in Fonterra:
@hooroo
fonterra is setup for protein (wholemilk powder)not fat (butter)
does surprise me what payout is seeing they are running at a loss, Must have something to do with the milk price manualYes, I get that, as I used to be a management accountant for them. But they still sell butter. It's not as if SMP and WMP are low and with the NZD a bit hopeless against USD, they should still be creaming it......
You're a bean counter? All this time I had no idea. HFA.
It's not hard to be one. It's like money for dummies that can't become engineers/doctors etc....
HFA?
I agree, I tell my multitude of accountant friends that all the time.
Hooroo from Accounts
That's the key, trick the young ones into thinking it is tough and hard work and that way there is a supply shortage in NZ and you can name a price.
There's clearly not a supply shortage in NZ yet, I went to a 100+ guest wedding last year and I'm pretty sure that my mate who's a producer on Hauraki, his scientist missus and I were the only non accountants there.
-
@hooroo
i thought you had been,
i would have thought it is percentage of product they can produce.I cannot think of a new butter plant going in but just about every new site and upgrades have been powder based (darfield ,edendale,litchfield ,clandeboye) butter just went through the roof.noone has expected fat to do this. funny enough westland is butter based but i think there payout will be less than fonterra for the 17/18 season -
@ploughboy said in Fonterra:
@hooroo
i thought you had been,
i would have thought it is percentage of product they can produce.I cannot think of a new butter plant going in but just about every new site and upgrades have been powder based (darfield ,edendale,litchfield ,clandeboye) butter just went through the roof.noone has expected fat to do this. funny enough westland is butter based but i think there payout will be less than fonterra for the 17/18 seasonYeah, I get that but that doesn't account for a loss, high butter prices.
If it was high butter prices that drove down Whole and Skim milk price and infant formula, then absolutely.
-
@hooroo
sorry i was thinking more payout
they wrote off losses to beingmate and danone off about 405m and 183m nothin to do with butter though.
try this www.stuff.co.nz/business/farming/102441305/fonterra-half-year-loss-of-348m-after-beingmate-writedown-of-405m -
@ploughboy I can't back this up but surely they would have taken those losses up as a provision in the year they were identified? Is that comment a media misunderstanding?
If I am correct they would bare no influence on the current loss?
-
@hooroo
as a ex shareholder and ex dairy farmer i dont follow it closely enough to know to much but just read this in the farmers weekly hopefully this link works as it asks more questions https://farmersweekly.co.nz/# Go to article farmers overpaid
