Open Country Cheese blames its full year loss of $29.5m on the high Price of milk and our strong dollar.
The Auckland-based company has faced a kiwi dollar trading near a five-month high against the greenback in volatile global markets while global demand for commodities have helped drive up the price of milk, putting pressure on processing margins.
“It is clear that when this high degree of volatility is coupled with the commitment we have to produce competitive returns to our supply base we will have considerable more variance in our year to year trading results than desirable,” chief executive Steven Smith and chairman Laurie Margrain said in the annual report. . .
. . . The dairy processor paid an average $7.56 per kilogram of milk solids to its farmer suppliers, a 24 percent increase from a year earlier. That’s short of the $7.60 per kg and 65 cents per share distributable Fonterra paid to its farmer shareholders.
Open Country is controlled by the Talley family and its second biggest shareholder is Singapore’s Olam International.
Will the people who are so upset at the thought of foreign investors taking New Zealand-made dividends be just as concerned about these ones having to take a loss.