How Fonterra is dealing with impact of coronavirus outbreak

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Fonterra is "working hard" to mitigate any effects the coronavirus may have on the co-op, as businesses around the world adjust to the fast-moving outbreak says Mike Cronin.

"One thing we're all doing all around the world is sharing the same event which is just amazing," Fonterra's Managing Director of Co-operative Affairs told The Country early edition's Rowena Duncum.

"The first half impact on us wasn't too much but who knows what, with the second half? We're working hard around that."

Most of Fonterra's milk had already been contracted in first half, which allowed the co-op to maintain its forecast farmgate milk price range at $7.60 per kg, "which is really good news for farmers and for New Zealand," said Cronin.

Listen below:

"Dairy's proven to be relatively resilient, especially compared to others at the moment ... [with] a co-op of our size and scale ... we can shift product around and we can go to different markets when there's a bit of pressure."

Globally the export market remained "pretty fluid" and was moving fast said Cronin.

"Last month about 80 per cent of stores like Starbucks were closed in China. Now that's down to about 20 to 25 per cent. So there's shifting every which way."

"Our sales teams have got their ear to the ground and working with customers to see what they need next."

Also in today's interview: Cronin went over Fonterra's interim results and talked about how the co-op was practising social distancing with webinars rather than roadshows.