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Commission concerned Fonterra’s risk estimate is too low when calculating milk price

By   /  June 14, 2018  /  Comments Off on Commission concerned Fonterra’s risk estimate is too low when calculating milk price

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MIL OSI – Source: Commerce Commission – Release/Statement

Headline: Commission concerned Fonterra’s risk estimate is too low when calculating milk price

The Commerce Commission has released an emerging view that Fonterra’s estimate of risk in calculating the cost of financing milk processing operations is too low. The impact of this is that Fonterra calculates a higher milk price than would be the case if it used a more feasible allowance for risk in the cost of finance, consistent with other processors.

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