New Zealand dairy giant posts its first-ever loss

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.

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.