Wednesday, 12 November 2014 11:18

Payout is priority

Written by 
Theo Spierings addresses the AGM. Theo Spierings addresses the AGM.

FONTERRA IS assuring farmers that the milk payout will remain its main priority.


Speaking at the co-op's annual meeting in Palmerston North this morning, Fonterra chairman John Wilson said the co-op is always striving to improve total payout to farmers.


"Our payout strategy will never change," he says.


Wilson acknowledged that on-farm cash flow is tight given the sharp drop in payout compared to last year.

 

Fonterra is forecasting $5.30/kgMS this season. Last season farmers received $8.50/kgMS - comprising a milk price of $8.40 and 10/share dividend.


Wilson says tight cash flow will force farmers to reduce feed and supplements in summer; more cows are also expected to be culled.


This will impact milk production for this season and next season. Fonterra's milk supply this season is up 3% compared to last season.

More like this

Editorial: Well Done, Miles!

Editorial: Well Done, Miles!

OPINION: In 2018, when Fonterra’s board tapped Miles Hurrell to step in as interim chief executive, the co-operative was in the doldrums.

Next CEO

OPINION: Who will replace Miles Hurrell as Fonterra's next CEO?

Media Obsession

OPINION: The mainstream media's obsession with (sleazy) 'tabloid' issues were to the fore at Fonterra's recent media conference to discuss its interim results.

Popular Reads

back to top

Featured

Shane Jordan Beats Brother to Win NZ Timbersports Title

Shane Jordan Beats Brother to Win NZ Timbersports Title

While not all sibling rivalries come to blows, one headline event at the recent New Zealand Rural Games held in Palmerston North certainly did, when reigning World Champion Jack Jordan was denied the opportunity of defending his world title in Europe later this year, after being beaten by his big brother’s superior axle blows, at the Stihl Timbersports Nationals.

Luxon Reveals Updated Ministerial Lineup

Prime Minister Christopher Luxon has announced changes to the ministerial lineup, including a new Minister for the Environment and a new Associate Agriculture Minister.

National

Machinery & Products

Chinese Tractors Eye Western Europe

Chinese Tractors Eye Western Europe

Having caused quite a stir at last year’s Agritechnica, Chinese manufacturer Zoomlion is reported to be conducting large-scale field trials…

Franz Grimme Turns 80

Franz Grimme recently celebrated his 80th birthday earlier March and continues to be an entrepreneur with passion and pioneering spirit,…

» Latest Print Issues Online

dairynewscover
ruralnewscover
winegrowercover

Visit archives

The Hound

What A Choice!

OPINION: If you ask this old mutt, the choice at the next election isn't shaping up as a contest of…

Your Call!

OPINION: A mate of yours says we're long overdue for a reckoning on what value farmers really get for the…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter