Yikes what happened to Fontera?! (2015, buying, prices)

[Samuel,J]

It's reported a massive drop in net profits, down 76% from last year and pre-tax earnings dropped by 50%, farmers are getting less in payouts too. Overall, a $5b hit to a "rock star" economy which has caused the Kiwi dollar to drop to its lowest level in a year 80.40 US cents.

It demonstrates the dangers of a country's economy being over reliant on a mono-culture. But I suppose less dairy farms is good news for the environment, so there is a silver lining. Cheaper dairy prices for NZ consumers would be a plus too, if they happen.

Fonterra slashes 2015 milk payout to $5.30 kg/MS, earnings tumble 76 percent | The National Business Review

Fonterra profit plunges, payout forecast cut | Stuff.co.nz

Fortunately our money is in green, ethical investments. I suppose you could say we are part of the divestment movement.

[Joe90]

It's the nature of an export based economy, rather than "mono-culture" I grew up around farming. Things are only ever as good as the last payout.

There won't be a lessening of dairying, but some debt laden farms will fall by the way, with some absorbed by bigger businesses.

[Battleneter]

Not sure why us Queenslanders would be so constantly interested in NZ, unless we were subconsciously not happy here

What idiot journalist said NZ had a "rock star economy"?, sounds very stupid. The NZ economy is still doing well over all.

Just like Iron Ore for Australia commodity prices go up and down and a drop had already been forecast, not every year can be a great one, try not to get to excited this was news 6 months ago.

[Samuel,J]

Originally Posted by Joe90

It's the nature of an export based economy, rather than "mono-culture" I grew up around farming. Things are only ever as good as the last payout.

There won't be a lessening of dairying, but some debt laden farms will fall by the way, with some absorbed by bigger businesses.

Do you think super farms may be the result of that and who/where are the buyers likely to be?

[Samuel,J]

The reason why I asked is that there seems to be a lot of Chinese companies buying up large dairy farms, surely that's not going to help Fontera's business much.