Editorial: Wool's Back in the Black
OPINION: Confidence in the wool sector is rebounding as prices hit levels not seen in more than 15 years.
Few will disagree Fonterra has botched its public relations response, not to mention serious mistakes at the Hautapu factory that started it all. Sadly the bad publicity is far from over: the various inquiries will be rolling it out for months.
Right now we’re seeing a phenomenon you could call the ‘race to China’. Fonterra is sending a delegation there, MPI is sending its man there and John Key is planning a visit there too. With bags packed with humble pie they are hoping to placate the Chinese for their stuff-ups. No mention yet about the impact on other dairy companies and others tainted and affected in various ways.
But amidst all the Fonterra turmoil is a spark of good news on the home front for dairy farmers who have kept their heads down and focused on their farming. Early indications are that the drought’s effects are being overtaken by the mild winter, and that production is now roaring away in this early spring.
It might be too soon to lay bets, but hope is there for a good season. The other good news is the global milk price holding up and the good payout announcements by all dairy companies.
One has to admire dairy farmers for their resilience during the Fonterra crisis. They have remained calm and focused on the issues on-farm, doing what they do best – producing high quality milk. They have been badly let down by Fonterra, whose directors and senior managers ought to be extending apologies to their shareholders, not just to Chinese customers.
