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16 Jul 2015
Fonterra cuts 523 jobs as world dairy prices continue to shrink
FXStreet (Mumbai) - In a knee-jerk reaction to falling global daily prices, New Zealand’s multinational dairy cooperative owned by 10,600 New Zealand farmers announced 523 job cuts on Thursday.
Fonterra said the "disestablishing" of the more than 500 roles was part of an ongoing business review. The affected roles included administration roles, sales and ingredients, consumer, marketing, research and development, communications, health and safety, food safety and quality, group resilience and risk, property, procurement and change management.
The job losses come as world dairy prices continue to sink with prices in the latest GlobalDairyTrade (GDT) auction falling 10.7% to USD 2082, the lowest level since July 2009.
RBNZ to cut rates aggressively
The Kiwi has been sold aggressively since Wednesday’s NY session after GDT auction showed another fall in dairy prices. Fonterra’s decision to cut jobs only highlights the growing concerns regarding falling dairy prices.
Consequently, the market is now expecting more aggressive interest rate cuts from the Reserve Bank, which is scheduled to review interest rates next Thursday. The NZD/USD pair is currently trading 1.12% lower at 0.6517.
Fonterra said the "disestablishing" of the more than 500 roles was part of an ongoing business review. The affected roles included administration roles, sales and ingredients, consumer, marketing, research and development, communications, health and safety, food safety and quality, group resilience and risk, property, procurement and change management.
The job losses come as world dairy prices continue to sink with prices in the latest GlobalDairyTrade (GDT) auction falling 10.7% to USD 2082, the lowest level since July 2009.
RBNZ to cut rates aggressively
The Kiwi has been sold aggressively since Wednesday’s NY session after GDT auction showed another fall in dairy prices. Fonterra’s decision to cut jobs only highlights the growing concerns regarding falling dairy prices.
Consequently, the market is now expecting more aggressive interest rate cuts from the Reserve Bank, which is scheduled to review interest rates next Thursday. The NZD/USD pair is currently trading 1.12% lower at 0.6517.