Milk Glut Drags Fonterra Forecast Down to $9.20/kgMS
A milk glut around the world shows no sign of easing, putting downward pressure on farmgate milk prices for the next few months.
Despite employing a huge team of spin doctors who are paid well to enhance and protect the co-op’s reputation, the public face of Fonterra goes from bad to worse. Right on the heels of announcing a near-$200 million loss for the past year, reports have come to light about the co-op’s Europe staff flying at least 9000km to a sales and marketing meeting at a Southern California beach resort town. The company refused to give details of the meeting at the tourist and surf mecca Huntington Beach, which NBR reported was attended by up to 200 staff from the co-op’s New Zealand milk product division just when it was announcing, last week, a historic annual loss of $196 million.
