They have made regular operating losses disclosed since 2015.
Fonterra has proven, high-quality, model farms to produce fresh milk for Chinese consumers.
“However, this does not necessarily mean we need to have large amounts of capital tied up in farming hubs,” Hurrell said.
The joint venture with Abbott for two more Chinese farms is not under review and those farms could supply Fonterra’s fresh milk customers if needed.
In the interim report in March Fonterra said China Farms made a loss because of lower production, added effluent and animal management costs and increased feed prices because of trade disputes between the United States and China.
The plan now is to grow threefold this year the proportion of milk going into consumer brands and food service from 5% of output to 15%.
