Dairy giant Fonterra is expected to post a substantial annual loss when it releases its financial results today.
It has been a tumultuous year for the co-op, with a large compensation payout to French food company Danone, and a write-down of its investment in Chinese dairy company Beingmate.
ASB senior rural economist Nathan Penny told Mike Hosking Fonterra has struggled to add much more value to its milk products, but farmers should be pleased considering the current conditions.
"Farmers will be relatively content with the current forecast milk price payout."
LISTEN ABOVE AS NATHAN PENNY SPEAKS TO MIKE HOSKING
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