Displaying items by tag: Beingmate

Fonterra's lack of majority control over troubled Chinese company Beingmate is hindering efforts to turn it around.

The China infant formula market has been very challenging for several dairy companies operating there for the last 18 months – not just Fonterra, says Rabobank senior dairy analyst Michael Harvey.

Fonterra has appointed a board sub-committee to salvage its disastrous investment in Chinese infant formula trader Beingmate.

Outgoing Fonterra chief executive Theo Spierings says the normal tenure of a global chief executive is between five and seven years.

Fonterra has posted a half-year loss of $348 million on the back of a huge write-down of its Beingmate investment in China.

Troubled Chinese infant formula company Beingmate has sold a subsidiary, despite opposition from cornerstone shareholder Fonterra which owns an 18.8% interest.

Fonterra is not the only global dairy co-op struggling to save a joint venture in China.

Despite news that Fonterra’s partnership with Chinese company Beingmate appears to be going from bad to worse, the co-op is still claiming “confidence” in the investment.

Fonterra has scope to lift its payout from current guidance, but its losses on Beingmate will likely weigh on its earnings and dividend payments, says New Zealand brokerage firm OMF Financial.

Fonterra says its partnership with Beingmate has enabled the Anmum range to expand from 60 to 184 cities.