New Zealand dairy giant Fonterra retrenches after big losses

September 25, 2019 - 9:08 pm

WELLINGTON, New Zealand (AP) — New Zealand's largest company Fonterra once had grand ambitions to dominate the world's dairy markets, but after suffering stinging losses to the value of its businesses abroad has scaled back its vision.

Fonterra on Thursday announced its worst-ever annual result as it wrote down the value of its assets by hundreds of millions of dollars and promised to stay more focused on its roots on New Zealand dairy farms.

Owned cooperatively by 10,000 farmers, the company is the most important to New Zealand's economy and is responsible for some 25% of New Zealand's exports.

The company announced an after-tax loss of 605 million New Zealand dollars ($380 million) for the year ended July, compared to a loss of NZ$196 million the previous year. The loss included write-downs of NZ$826 million.

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