ZB ZB
Live now
Start time
Playing for
End time
Listen live
Listen to NAME OF STATION
Up next
Listen live on
ZB

Fonterra's management and structure blamed for massive financial loss

Author
Newstalk ZB,
Publish Date
Tue, 13 Aug 2019, 1:36PM

Fonterra's management and structure blamed for massive financial loss

Author
Newstalk ZB,
Publish Date
Tue, 13 Aug 2019, 1:36PM

Fonterra's financial woes are being blamed on the way the cooperative was set up.

It's expecting a loss of up to $675 million this financial year, after massive write-downs of its assets.

Regional Economic Development Minister, Shane Jones, says Fonterra's management and board are to blame.

However, agricultural commentator Allan Barber told Kate Hawkesby they have inherited a situation that was avoidable many years ago.

He says overseas marketing of the product should've been part of a separate vehicle.

“The present board and management have inherited a difficult situation because of decisions made under the previous leadership.”

Barber says international companies like Danone and Nestle were set up to be food marketers.

“ Fonterra was set up to be a milk processor that wanted to be a food marketer as well, but they have founds has it's far too expensive.”

Take your Radio, Podcasts and Music with you