Fonterra reported the uncertainty due to the coronavirus
CEO of Fonterra Miles Harrell said the co-op is maintaining its profit forecast despite market uncertainty due to the coronavirus.
"The dynamics since the beginning of the year is positive. However, taking into account the risks that may arise from the coronavirus in the second half of the year, we are cautious and keep the forecast at the same level", said Harrell.
He added that there is a slowdown in unloading at ports, and Fonterra is careful not to overload the export channel to China.
"Citizens in China are still restricted in their movements, many restaurants and catering outlets are closed, which affects our partners who buy dairy products", stressed Harrell.
Earlier, Rabobank reported the negative consequences on the economy of the dairy market in the world due to the coronavirus.
Initially, Rabobank experts predicted that in the first half of 2020, imports of dairy products to China will decrease by 3%, but will grow by 1% in annual terms. In the context of the situation with COVID-19, Rabobank forecasts a 1% decrease in overall demand for dairy products, which will lead to an 11% reduction in imports. If overall demand falls by 5%, imports will fall by 25% in 2020.
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