Margin pressure Fonterra's biggest challenge

Margin pressure Fonterra's biggest challenge
Rebecca Howard
The most immediate challenge facing Fonterra in the final quarter of the year is further pressure on margins, the co-operative has told its farmer council.“While overall, stronger gross margins have been seen so far this year, they’ve narrowed in the third quarter as the increasing raw milk prices have flowed through to input costs,” it said in a response to a question from the Fonterra Co-operative Council.“In addition, the impact of pricing lags on sales contracts with major customers has delayed the ability to pass th...

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