Others doing fine

With the co-op’s financial woes well documented everywhere, reports of record results from others mean one thing: Fonterra’s strategy has been wrong all these years.

Look at Arla Foods, a European co-op nearly the same size as Fonterra. It’s total revenues for the six months ending June rose nearly NZ$9 billion -- NZ$25 million higher than the same period last year, backed by a 4.6% rise in branded product sales and higher sales prices. Net profit share for 2019 is expected to be in the target range of 2.8-3.2% of revenue.

And at home, Synlait reported an increase in profit to $82.2m, plus a total average milk price of $6.58/kgMS off revenue that exceeded $1 billion for the first time.