Fonterra cements position as the big cheese!
Fonterra has cemented its position as the country’s number one cheesemaker by picking up nine NZ Champion of Cheese trophies this year.
FONTERRA HAS reduced its 2014-15 forecast payout to $4.70/kgMS.
The 60c drop from its previous forecast of $5.30/kgMS had been widely expected.
The co-op is still sticking to its estimated dividend range of 25-35 cents per share; this amounts to a forecast cash payout of $4.95 – $5.05 for the current season.
Chairman John Wilson says that although farmers were expecting this lower forecast, the revision will put pressure on their farming business budgets.
"There is still considerable volatility in global dairy markets," says Wilson.
"Right now we are seeing a number of factors that are delaying a sustained return to higher global prices."
The global milk supply remains greater than demand, which has resulted in GlobalDairyTrade prices for Whole Milk Powder falling 16.9% since late September, while Skim Milk Powder prices have fallen 7.7%.
"Falling oil prices, geopolitical uncertainty in Russia and Ukraine, and subdued demand from China as it continues to work through inventory are all contributing to ongoing volatility and weak demand," says Wilson.
"Today's revised forecast reflects the Board and management's best estimates at this time. Given the uncertainty we are advising farmers to continue to be cautious with budgeting and we will update them as the season progresses."
Chief Executive Theo Spierings says Fonterra was undertaking a targeted programme to generate more cash to support farmers.
"Cash is important for our farmers and for our cooperative," Mr Spierings said. "We will be further strengthening our tight controls on operating expenditure, and will be driving harder on working capital, and deferring capex – provided this does not slow progress on our V3 business strategy.
"This is a clear signal to farmers that we are all in this together. We are tightening our belts, just as they are."
The board expects to look at the estimated dividend range at the time it announces its Interim Result.
Fonterra has cemented its position as the country’s number one cheesemaker by picking up nine NZ Champion of Cheese trophies this year.
New Zealand dairy processors are welcoming the Government’s commitment to continuing to push for Canada to honour its trade commitments.
An educational programme, set up by Beef + Land New Zealand, to connect farmers virtually with primary and intermediate school students has reported the successful completion of its second year.
The Food and Agriculture Organisation of the United Nations (FAO) has welcomed a resolution adopted by the United Nations (UN) General Assembly to declare 2026 International Year of the Woman Farmer.
Waikato herd health veterinarian Katrina Roberts is the 2024 Fonterra Dairy Woman of the Year.
Horticulture NZ chief executive Nadine Tunley will step down in August.
OPINION: The new government has clearly signalled big cuts across the public service.
OPINION: Your canine crusader is not surprised by the recent news that New Zealand plant-based ‘fake meat’ business is in…