Thursday, September 23, 2010

Continued Good Times

Fonterra has announced its second highest ever dairy payout and, more importantly, a significant reduction in it's gearing resulting from the earlier decision to allow limited trading of its shares by farmers. Coincidentally, last nights international auction saw prices rise a further 1.9%.

Any cow cocky who is struggling to pay his interest bill under these blissfully generous conditions deserves to be sold up and the banker who lent him the money deserves to take a bath.

3 comments:

Anonymous said...

And yet they will still hit up the tax payer for a bail out next time there is a drought or floods.

Adolf Fiinkensein said...

Anon, I think you will find there is very little taxpayer subsidy involved in what you unkindly call a 'bail out.' Some deferral of taxation to help cashflow so as to keep paying staff and buy extra feed to keep stock alive but that's about it.

gravedodger said...

AF is on it, all they will get is practical financial arrangements that will smooth the need to front up with provisional tax on income that will not eventuate without incurring the penalties that misjudging income could incur. The net result will be neutral.
Anonymous is blowing smoke out his arse or does he, like me, see WFF as the welfare it is. All these guys will get is fairness.