September 13, 2018
Fonterra faces a disastrous financial year
New Zealand's largest dairy company, Fonterra, stated that it will completely review its business after experiencing first-ever loss.
After losing hundreds of millions of dollars on its investments in China, Fonterra also had to pay a large arbitration settlement following a 2013 botulism scare.
The organisation has a new leadership team, which is promising to turn things around after both the previous chief executive and the board chairman recently left.
Miles Hurell, chief executive, revealed that Fonterra failed to meet the promises it had made to more than 10,000 farmers who own the company under a cooperative structure.
Fonterra announced an after-tax loss of NZ$196 million (US$129 million) for the year ending July, compared to a previous-year profit of NZ$745 million (US$488 million).
Source: Palm Beach Post