How did Fonterra manage to post a $348 million loss?

Rural Exchange 15/04/2018

The contrast between Synlait Milk's recent record first-half profit and Fonterra's interim loss suggests the world's largest dairy exporter may have some issues.

While Synlait Milk posted a first-half profit of $40.7 million, four times more than it earned a year earlier, Fonterra recorded a first-half loss of $348 million for the six months ended January 31.

This all came after writing down its 18.8 percent stake in Beingmate and paying $183 million in a settlement to Danone.

Independent consultant Keith Woodford, who works internationally on agri-food systems and rural development projects, joined Rural Exchange to look deeper into the issues behind Fonterra’s massive loss.

Mr Woodford says the reason Synlait is doing so well, is because of their relationship with the A2 milk company.

One of Fonterra's problems is their inability to jump at new opportunities as the industry changes he said.

Watch the full interview with Keith Woodford above.

Rural Exchange with Hamish McKay, Sarah Perriam and Richard Loe, 5-7am Saturday and Sunday on RadioLIVE with Carter’s Tyre Service. Click here for all the ways to watch and listen.

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