While making the performance budget for the business, it is important to keep in mind that the business had been badly impacted by “poison-milk-powder event”. Similarly, there had been a huge hurricane and heavy rainfall leading to the poor supply of milk around the world. Since there has been a huge decrease in global daily price at the beginning of the year 2016, the business decided to provide Fonterra co-operative with loan of $.50 for each kilogram of milk items’ production until December 2015. This loan had been free from interest up to 31 May 2017. It would be repaid once the farm gate price goes beyond $6 per kilogram. This had led to bringing forward of the percentage paid in advance rate remuneration for milk for supporting the cash flow during the peak financial demands. The dividends were brought forward for supporting the cash flows during winters. In addition, there had been a Sanlu incident in the year 2008 which is a major loss of China’s dairy market and business has been recovering slowly with that.