Fonterra shaves 50c off forecast milk price
Fonterra has dropped its forecast milk price mid-point by 50c as a surge in global milk production is putting downward pressure on commodity prices.
Milking It was surprised to read former Prime Minister Helen Clark’s comments about “a number of concerning aspects of Fonterra’s iconic dairy brands”.
In a social media post, Clark asked whether an investment programme was planned for the proceeds. “Or will there be just a one-off cash distribution to shareholders which could well end up being priced into the value of farmland?”
Dairy farmers have done it tough for the past few years with low milk price and soaring input costs. The $2/share capital return will help farmers reduce debt and catch up on maintenance work on farms.
And, by the way, how farmers spend this money is their call.
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