Fonterra’s report card - "must do better"
Fonterra’s net loss after tax of $196 million is a very disappointing result, Federated Farmers Dairy Chairperson Chris Lewis says.
"That’s the first full-year loss in their 18-year history. From a $745 million profit last financial year to a $200 million loss - that’s a big drop and they simply must do better. But I’m confident they’ll turn things around."
Chris says farmers and shareholders will be looking for the new chief executive and chairperson to hit the ground running.
"I hope those two have a new broom for the shop floor. Good communication will be key."
Feds Dairy Vice-Chair Wayne Langford says farmer members of the co-operative will want to see positive steps underway early into the new year.
"The forecast earnings per share for FY19 of 25-35 cents should be considered a minimum, in my view."
Federated Farmers national board and Dairy executive members will continue to have regular meetings with Fonterra "and it’s more important than ever for us to push for improvements and keep them on their toes," Wayne says.