He may not like saying "I told you so", but Deputy Prime Minister Winston Peters says he always knew Fonterra's Beingmate investment wasn't a good idea.

Fonterra's first half descended into a bottom line loss of $348 million after accounting for a $183m legal settlement and the writing down of its investment in China's Beingmate by $405m.

Speaking to The Country's Jamie Mackay today, Peters said: "There's nothing so antiseptic as the saying 'I told you so' but I darn well did. I told you that Beingmate was a disaster and now it's down to the tune of an excess of 400 million dollars loss. That's appalling. When everybody else's share market's been going through the roof, the dairy farmers' share market has been going through the floor."

Fonterra is attempting to reinvigorate the Beingmate investment, and CEO Theo Spierings has resigned since the announcement but Peters says "heads should be rolling everywhere - not just Theo"

Advertisement

"This was a hopeless purchase and worst of all they never at any time had any control of what was going on in China."

Next in Peters' sights is Air New Zealand's culling of regional services which has been criticised by Minister for Regional Economic Development Shane Jones.

Peters says Jones should be known as the "defender of the provinces" and that he believes the regions are subsidising the main centres when it comes to flights.

"You hop on a flight from Wellington to Christchurch or Christchurch to Auckland and compare those prices with the rest of the country. I know who is subsidising who here."

Also in today's interview - Peters talks about Russia, confesses why he's not playing golf with Obama, accuses Jamie Mackay of being a member of the "Mother Teresa Society for Forgiveness," and rebrands The Country as the "Big City Show," or "The Unbridled Capitalist Show."

Listen below: