The Fonterra Shareholders Fund (FSF) lists this Friday. Clearly investor interest in Fonterra has been unprecedented. Retail, farmer and global demand was very strong. That is why it is relevant to remember the key short term drivers of this investment and valuation is not the milk price, but instead centres on Asian growth and Fonterra’s ability to maintain a fast growth rate in the Foodservices segment. Investors must also keep an eye on governance.
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