fbpx
Print this page
Thursday, 28 January 2016 15:04

Payout drop delivers ‘a sobering blow’

Written by 
Fonterra Shareholders Council chairman, Duncan Coull. Fonterra Shareholders Council chairman, Duncan Coull.

Fonterra Shareholders Council says the co-op's 45c drop in the 2015-16 forecast payout is a sobering blow to farmers.

Council chairman, Duncan Coull, says today's announcement of a 45 cent fall in the 2015-16 forecast Farmgate Milk Price, from $4.60/kgMS to $4.15/kgMS, is one that will further amplify the effects of the current low milk price environment on Farmers and their businesses.

"Farmers are very aware that this is a global story which is now having a significant local effect. Strong supply out of Europe coupled with flat demand is driving market sentiment as evidenced by the GDT results.

"While acknowledging that the milk price is something that is largely out of our co-op's control, farmers are always looking to the Board to communicate any significant price fluctuations that occur throughout the season in a very timely manner.

"Looking forward our Farmers will be expecting our co-operative model, which sees shareholders benefit from milk price and the value-add side of the business, to deliver for them in terms of the total available for payout.

"In the interim I encourage farmers to sit down with their rural professionals and seek guidance on how best to navigate through these tough times.

"Of equal importance is that they stay connected to their communities, and engaged with their co-op, especially in the current environment."

More like this

Fonterra posts solid results

Fonterra has delivered a solid half-year result, thanks to higher margins and sales volumes across the co-op's diversified product and category mix.

Featured

Dairy sheep and goat turmoil

Dairy sheep and goat farmers are being told to reduce milk supply as processors face a slump in global demand for their products.

Hurry up and slow down!

OPINION: We have good friends from way back who had lived in one of our major cities for many years.

Editorial: Passage to India

OPINION: Even before the National-led coalition came into power, India was very much at the fore of its trade agenda.

National

Govt urged to reduce ETS units

The Climate Change Commission wants the new Government to reduce NZ Emissions Trading Scheme (ETS) auction volumes as son as…

Dairy sheep, goat woes mount

Dairy sheep and goat farmers are being told to reduce milk supply as processors face a slump in global demand…

Machinery & Products

All-terrain fert spreading mode

Effluent specialists the Samson Group have developed a new double unloading system to help optimise uphill and downhill organic fertiliser…

Can-Am showcases range

Based on industry data collected by the Motor Industry Association, Can-Am is the number one side-by-side manufacturer in New Zealand.