Fonterra’s Millionaire Managers’ Chalk Up Another Success
Fonterra farmer-shareholders have lost almost NZ$269m on their $755m investment in Shenzen-listed Beingmate Baby & Child Food while that company has reported losses, upwards of NZ$159m.
“We can chalk this up as yet another success for the mercenary millionaires’ club that’s running Fonterra,” says New Zealand First Leader and Northland MP Rt Hon Winston Peters.
“You would have thought Fonterra would have learned from bitter past experience. It hasn’t. Last year, allegations of milk powder tampering caused Beingmate to forecast a $48m loss for the first quarter of the financial year. We now know that was a gross underestimate.
“It isn’t even a case of one bitten twice shy because the Chinese Government, who we are supposed to have a ‘high quality’ trade agreement with, shifted the goal posts with its Article 81 regulatory change. This slashed the number of infant formula brands and recipes on shelves there by 90%.
“It may be a long term investment but the only ones laughing are those who sold their shares to Fonterra in 2015,” says Mr Peters.