Tuesday, 16 March 2021 11:30

A2 Milk misery

Written by Milking It

font size decrease font size increase font size
Print
Email

OPINION: In recent years Fonterra has been ridiculed by commentators about the fact that it has been upstaged by a young dairy company, a2 Milk.

Just last August, a2 was living the dream, reporting a bumper after-tax profit of $385.6 million on revenues of $1.73 billion.

Its share price, which at one stage had dropped to 10c, hit the giddy heights of $21.50, valuing the company at $15.9 billion, above NZ's biggest co-op.

But the tables have turned. Thanks to three successive profit downgrades, a2's fortunes have tumbled.

In recent weeks, its share price was $9.50, meaning the company has more than halved in value in little over six months.

It's currently worth about $7 billion.

More like this

New UHT plant construction starts

Construction is underway at Fonterra’s new UHT cream plant at Edendale, Southland following a groundbreaking ceremony recently.

Synlait lifts milk price to $10

Canterbury milk processor Synlait Milk has lifted its forecast base milk price for the season by 50c to $10/kgMS.

Fonterra's $64m investment to cut emissions by 9%

Fonterra is set to convert two coal boilers to wood pellets at its Clandeboye site in South Canterbury, a crucial step in Fonterra's commitment to exit coal by 2037.

Chilled milk partnership

Last month marked one year since the launch of an innovative collaboration known as the PAUS Programme (Pay- As-You-Save), which has made it easier for Fonterra farmers to access next generation milk chilling technology.

Fonterra ‘on track’ to meeting climate change, coal targets

Fonterra says it remains on track to meet its climate targets and be coal free in its North Island manufacturing.

Featured

FMG launches 'Under Pressure' campaign

As New Zealand enters the summer months, rural insurer FMG is reminding farmers and growers to take extra care with a new campaign.

Stay safe over summer - St John

Hato Hone St John is urging Kiwis to have a safe summer this year.

Silt Recovery Taskforce wins national award

Hawke’s Bay’s Silt Recovery Taskforce has received the Collaboration Excellence Award at the Association of Local Government Information Management (ALGIM) Awards.

New UHT plant construction starts

Construction is underway at Fonterra’s new UHT cream plant at Edendale, Southland following a groundbreaking ceremony recently.

Animal owners urged to make a list, check it twice

The New Zealand Veterinary Association (NZVA) has launched a new summer checklist for animal owners this year.

Irrigation scheme delivers on water quality, environment

The Amuri Basin Future Farming (ABFF) Project in North Canterbury is making considerable strides in improving irrigation efficiency, riparian management, and environmental innovation.

National

Fonterra ‘on track’ to meeting climate change, coal targets

Fonterra says it remains on track to meet its climate targets and be coal free in its North Island manufacturing.

Regional council agenda ‘to just reduce cow numbers'

South Canterbury dairy farmer and recently-retired Fonterra director Leonie Guiney has welcomed an announcement from the Canterbury Regional Council (ECan)…