Re: FONTERA story by NZPA on July 22.
a most interesting but highly predictable pattern for
this new conglomerate.
With the local story in the Waikato being that Tatua will
be paying the same next year as they have paid this year
($6.60) as compared to the 'NEW' new figure from Fonterra for
next year of $3.70 - it doesnt take much imagination to
predict what the Fonterra suppliers will be thinking.
(Tatua payout will be almost 80% more than the Fonterra
payout !!! so much for the efficiencies and improvements of
amalgamation !!))
Its no wonder Fonterra wanted Tatua to merge with the
rest of them, then Fonterra would never have to explain the
difference.
Prediction: In 10 years time there will be 15 or 20
'Tatua' type companies, and Fonterra will be about half the
industry.
So, if farmers dont want to put up the money for their
new factories and they decide to go public, then there might
well be some very good opportunities coming up soon - and I
expect that there will be quite a few of them.
See IRG research reports
