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[sharechat] Fonterra and Farmer co-ops

From:	"Colin Ross" <ceejaynz@xtra.co.nz>
Date:	Fri, 31 Aug 2001 22:58:29 +1200

A word of caution about Agricultural supplies.

While Fonterra is Farmer-owned, my opinion is that they will require the trading subsidiaries that supply the shareholders, to operate at small or even no profit margin.

Furthermore, consider the impact this kind of policy will have on the pricing structures of alternative, for profit traders.!!!

I speak as one who used to attempt to trade in this kind of environment.

Eventually the suppliers may cease to be dominant in Fonterra - but they should be cautious - look what happened to the pip-fruit growers and Enza !

Ceejay

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