Friday, 26 September 2008

Fonterra milk scandal sours

Bummer -I was prepared to give Fonterra the benefit of the doubt, Strangers in a
Strange land and all that - but this latest revelation about bacterial contamination is bad and as MACDOCTOR points out - its still seems that the directors dont know or cant find out what is going on ...

Fonterra’s China dream is finished.

Future investors must learn Fonterra’s lesson well. When you are dealing with an authoritarian society where face-saving is the norm, you must expect that mistakes and bad news will always be covered up. This is not to say that the Chinese are dishonest, far from it, they just have away of handling failure that confuses us. The type of transparency that you see in New Zealand, where even the Leader of the Opposition fronts up and apologises, is one that is unique to the West. Trade with China is certainly possible. Participation in joint ventures will require some work on both of our parts.

Homepaddock also has a good take on this issue...

As does Inquiring Mind who says SanLu is going cheap.

And I will now admit their PR sucks.

No comments: