fbpx
Print this page
Wednesday, 19 November 2014 08:37

Milk payout under pressure

Written by 
Milk payout under pressure

MILK PAYOUT to Fonterra suppliers is under more pressure after this morning's Global Dairy Trade auction results.

The latest GDT auction result saw the average price index down 3.1% compared to the last auction.

Fonterra's board meets early next month to review the $5.30/kgMS milk payout; a further cut is now almost certain.

In a worrying sign for Fonterra farmers, the price of whole milk powder- the flagship product- was down 5.1% over the previous auction. Skim milk powder price was also down a whopping 5.7%.

Fonterra's current forecast price consists of a $5.30/kgMS milk price and a dividend range of 25 to 35c. For a fully shared up farmer, this translates into a payout of $5.55 to $5.65 for the season. Last season Fonterra paid a record $8.40/kgMS milk price and a dividend of 10c/share.

More like this

Fonterra vote

OPINION: Voting is underway for Fonterra’s divestment proposal, with shareholders deciding whether or not sell its consumer brands business.

Popular Reads

Bold taste wins gold medal

Alliance Group's Pure South Handpicked 55 Day Aged Beef has been recognised on the world stage, securing top honours at the…

Featured

$2b boost in NZ exports to EU

$2b boost in NZ exports to EU

New Zealand’s trade with the European Union has jumped $2 billion since a free trade deal entered into force in May last year.

US tariffs hit European ag machinery markets

The climate of uncertainty and market fragmentation that currently characterises the global economy suggests that many of the European agricultural machinery manufacturers will be looking for new markets.

Tributes paid to Jim Bolger

Dignitaries from  all walks of life – the governor general,  politicians past and present, Maoridom- including the Maori Queen, church leaders, the primary sector and family and  friends packed Our Lady of Kapiti’s Catholic church in Paraparaumu on Thursday October 23 to pay tribute to former prime Minister, Jim Bolger who died last week.

National

Machinery & Products