Fonterra, Sharesies join to make share trading easier
Fonterra is teaming up with wealth app provider Sharesies to make it easier for its farmer shareholders to trade co-op shares among themselves.
Fonterra has lifted its 2012-13 forecast payout by 25c.
This includes a hforecast Farmgate Milk Price of $5.50/kgMS, up from $5.25 on the previous forecast. It is forecasting a net profit after tax range of 40-50 cents per share, consistent with the recent Fonterra Shareholders' Fund Offer prospectus.
The co-op has also announced a 40 cent increase in advance rate payments to farmers.
Fonterra is required to consider its Farmgate Milk Price every quarter as a condition of the Dairy Industry Restructuring Act (DIRA).
Fonterra chairman Henry van der Heyden says after considering farmer shareholders' cash flow requirements, and the strength of the cooperative's balance sheet after the launch of TAF, the board had also decided to lift advance rate payments to farmer shareholders.
"The immediate effect of this decision is that our farmers will have more money flowing into their bank accounts from late January when they are paid for the previous month, and that will help them with their cashflows.
"Between 1 August and the most recent GlobalDairyTrade (GDT) trading event, prices have increased by an average 17.7 per cent. While there was a drop at last week's GDT event, it has not changed our overall commodity price forecasts."
Chief executive Theo Spierings says Fonterra's strong balance sheet meant that from a cash flow point of view the cooperative was in a position to increase payments to farmers over the next few months without any significant risk to its financial stability.
While the outlook for any movements in the New Zealand dollar exchange rate were neutral, the impact of weather events in other markets were likely to support the lift in forecast Farmgate Milk Price.
"There has been a persistent, serious drought in the United States. That has pushed up the price of grain, which in turn affects dairy production. There are also concerns about drought in the Ukraine and Russia. In South America, extreme wetness in parts of Brazil and Argentina could also depress wheat production," says Spierings.
"Given current global conditions, our forecasting anticipates global dairy prices are likely to move higher in the first half of 2013."
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.
Trade Minister Todd McClay says New Zealand has no intention of backing down in a trade dispute with Canada over dairy products.
Horticulture NZ chief executive Nadine Tunley will step down in August.
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