Fonterra shaves 50c off forecast milk price
Fonterra has dropped its forecast milk price mid-point by 50c as a surge in global milk production is putting downward pressure on commodity prices.
The co-op says as an investor in Beingmate, it only has access to publicly available information on the Chinese company’s performance.
“When we have a meaningful update on Beingmate’s direction, farmers will be the first to know,” a Fonterra spokesman told Rural News.
Asked if Fonterra was rethinking its investment in Beingmate, the spokesman said the strategic rationale for partnership with a leading local infant formula brand still stands.
“But we are disappointed the company hasn’t maximised the opportunity created by the new registration rules.”
Fonterra points out that its partnership with Beingmate has enabled Anmum to expand from 60 to 184 cities; Anmum infant formula is now in at least 10,000 stores in China, on all the major e-commerce platforms, and is one of the top performers in Beingmate’s product range.
“It’s important to understand that the 80,000 retail stores was a reference to Beingmate’s footprint in China; however, as Anmum is a premium brand Beingmate has made the decision to focus on 10,000 stores to reach the right target consumers.”
