Wednesday, 24 September 2014 09:14

Farmers will be ‘disappointed’

Written by 

Fonterra Shareholders Council chairman, Ian Brown says farmers will be disappointed with the latest drop in the 2014-15 season forecast payout.


Fonterra has dropped its forecast payout from $6 to $5.30/kgMS; it also announced an estimated dividend range of 25-35 cents per share.

 

Brown says even though farmers are aware of the prevailing market conditions and the effect they have on the price they receive for their milk the announcement will add to the challenges being faced on-farm.

 

"It is in these seasons that farmers will want to receive the full benefit from the integrated supply chain that their co-op provides.

 

"As farmers we are all too aware of the volatility that underpins our industry and this announcement will put real pressure on some farmers' cash flows.

 

"It is important for farmers to remember that while this is a forecast it is vital that you continue to exercise real prudence in your financial planning."

 

More like this

Saving water at dry spots

At least 3.4 billion litres of water will be saved every year under new water targets Fonterra launched this month, the co-op says.

Swinging out the lifeboats?

The Fonterra shareholders council announced last week that elections will take place in 10 of its 25 wards.

Others doing fine

It seems other dairy processors in New Zealand and elsewhere are doing fine while Fonterra struggles to keep its head above water.

 
 

» The RNG Weather Report

» Latest Print Issues Online

The Hound

Quota watch

The Hound understands that Mike Petersen’s time as NZ agriculture’s special trade envoy will soon end.

What a jerk

Your old mate notes that serial whinger Mike Joy continues to put the boot into the farming sector.

» Connect with Rural News