Revamped Fonterra to be ‘more capital-efficient’
Fonterra chair Peter McBride says the divestment of Mainland Group is their last significant asset sale and signals the end of structural changes.
It has also announced an estimated dividend of 32c/share - amounting to a forecast cash payout of $7.82.
Fonterra chairman John Wilson says the higher forecast farmgate milk price for the new season reflected continuing strong international prices for dairy.
"At the beginning of this season, our forecast was that dairy commodity prices would continue at or near current levels until the fourth quarter of 2013. However, supply constraints in Europe and China during the Northern Hemisphere spring have contributed to an increase in dairy prices of 3% over the past two months. In addition, the NZ dollar has weakened against the US dollar. These factors have contributed to our updated forecast," says Wilson.
Fonterra has also confirmed a further increase to the Advance Rate schedule, paid to farmer suppliers, starting from $5.50/kgMS.
"A higher Advance Rate provides our farmer shareholders a strong start to the season and the opportunity to grow their own farming businesses."
