Originally Posted by
Roger
Far more serious than that mate. Last year's pay-out was only $4.40 and now they're looking at $3.85. Sharemilkers with 61% debt, virtually none of them, can make money at these sort of payout's.
Even dairy farmers who own their land are leveraged to 61% are in real trouble. Worse, there is no sign of any light at the end of this tunnel, (deep mineshaft ?) and world-wide production is ramping up at the same time that demand appears to be falling. $200m advanced to 61% LVR to this sector.
HNZ should come clean, take some write-offs and heads need to roll that allowed average sector debt to ever got this high to a commodity sector with change-able fortunes in the first place. They should also recant their FY16 forecast and come clean and admit forecasting profit in this environment is impossible....but none of this will happen because just like the European banks that don't want to write-off their loans to Greece, taking a charge against these loans implies they made a mistake in the first place advancing them the money...and we can't have that when we're paid a seven figure salary can we !!