Fonterra unveils divestment plan
Fonterra is exploring full or partial divestment options for its global Consumer business, as well as its integrated businesses Fonterra Oceania and Fonterra Sri Lanka.
Farmers are being urged to budget on a milk price in the lower half of Fonterra's present guidance range, $6.25 to $7.75/kgMS.
ASB economist Nat Keall says there is plenty of uncertainty at this stage in the season.
"There are some upside risks as well as downside ones.
"Nonetheless, we think it is prudent for farmers to be budgeting on a milk price in the lower half of Fonterra's present guidance range."
ASB has lowered its forecast milk price to $6.60/kgMS.
Westpac is sticking to its $7.50/kgMS forecast, which was revised this earlier this month.
Westpac senior agri economist Nathan Penny says they had expected prices to continue to fall in the short term.
"Recall that global demand is weak, notably from our key market in China." However, the fall in last week's Global Dairy Trade (GDT) auction was larger than expected.
"And while it is difficult to read too much into one auction result, it does point to prices potentially falling by more than our updated forecast suggests," says Penny.
"To that end, Fonterra's forecast range is a useful tool to keep in mind.
"After Fonterra's recent update, the range stands at $6.25 to $7.75.
"Indeed, we continue to note that it's still early days in the season and a wide range of milk prices are possible," says Penny.
South Waikato farm manager Ben Purua’s amazing transformation from gang life to milking cows was rewarded with the Ahuwhenua Young Maori Farmer award last night.
Bankers have been making record profits in the last few years, but those aren’t the only records they’ve been breaking, says Federated Farmers vice president Richard McIntyre.
The 2023-24 season has been a roller coaster ride for Waikato dairy farmers, according to Federated Farmers dairy section chair, Mathew Zonderop.
Ministry for Primary Industries (MPI) director general Ray Smith says job cuts announced this morning will not impact the way the Ministry is organised or merge business units.
Scales Corporation is acquiring a number of orchard assets from Bostock Group.
Family and solidarity shone through at the 75 years of Ferdon sale in Otorohanga last month.
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