New Zealand dairy giant posts loss after China stake sours

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New Zealand’s largest company, which sells dairy products, says it will completely review its business after a disastrous financial year saw it post its first-ever loss.

Fonterra lost hundreds of millions of dollars on its investments in China and also had to pay a large arbitration settlement following a 2013 botulism scare. The company has a new leadership team, which is promising to turn things around after both the chief executive and the board chairman recently quit.

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Chief Executive Miles Hurrell says Fonterra failed to meet the promises it had made to more than 10,000 farmers who own the company under a cooperative structure.

Fonterra announced an after-tax loss of 196 million New Zealand dollars ($129 million) for the year ending July, compared to a previous-year profit of NZ$745 million.