"Our" business?
OPINION: One particular bone the Hound has been gnawing on for years now is how the chattering classes want it both ways when it comes to the success of NZ's dairy industry.
Beingmate last week reported a preliminary net loss of RMB964 million (NZ$211 million) down 23% on last year’s result. The company also confirmed it was delisting from the Chinese stock exchange.
Fonterra bought an 18.8% share in Beingmate in 2014 for $756m. Four years later the value of that investment has shrunk to about $220m.
Chairman John Wilson admits, in the latest issue of Fonterra’s Farm Source magazine, the co-op “remains very concerned” about Beingmate’s performance. However, despite the plague of issues with the Chinese company, he tells farmer shareholders they need “to be patient and play the long game”.
Wilson claims that despite Beingmate’s recent performance “the potential of our broader partnership remains”.
Wilson also says Fonterra’s management – including chief executive Theo Spierings – are “working through a strategic co-operation committee with Beingmate founder Sam Xie and are confident the situation can be turned around in the medium term”.
