I gather ATM doesn't have minimum quantities that they have to take.
What happens to all the milk not required?
Printable View
I gather ATM doesn't have minimum quantities that they have to take.
What happens to all the milk not required?
Not necessarily great for the company as it squeezes margins on retail products (and maybe IF depending on the A2 deal).
"
Because of course, as we know, global dairy prices tanked in 2015 and then went even lower in 2016.
Now I said earlier that good news for some can be bad for others. Well, it works in reverse too, you see.
The reality is, I think those plunging global dairy prices stopped Fonterra from getting into the financial cactus, well, pretty much as early as 2015.
Yes, that's right, the tanking milk price, bad as it was for farmers, was a saviour for a horrifically overspent and overborrowed Fonterra.
Consider this: In 2014 Fonterra's cost of goods sold was $19.813 billion, reflecting the high cost of its milk. In 2015 that figure dropped to $15.567 billion and in 2016 it dropped again, to $13.567 billion.
So, that's right, Fonterra's cost of goods across that two year period dropped by 31.5%, by a whopping $6.246 billion. "
https://www.interest.co.nz/opinion/1...4BDfPVFob0WCEw
I've been on record for a long time now, (above is just one of many posts calling this company, its management and directors out as useless), that this company is on a road to nowhere and shareholders are on a hiding to nothing. Long term I see ATM taking their processing needs to their own facilities leaving this dog to stumble along riddled with issues not the least of which are grossly incompetent management and extremely poor governance. Penno should be ashamed of himself, what a disgrace the whole Pokeno fiasco was. I wouldn't be an investor at any price, not even $1.86.