Fonterra chairman John Wilson spoke at the co-op’s recent annual meeting in Palmerston North. Here are excerpts from his speech.

MILK PAYOUT to Fonterra suppliers is under more pressure after this morning's Global Dairy Trade auction results.

THE IMPACT of Russia’s dairy ban on global dairy prices may be waning. The emergence of a ‘grey market’, allowing some Russian allies to buy milk from Europe and re-export it to Russia, is easing downward pressure on prices. 

FONTERRA HAS announced a forecast opening farmgate milk price of $7k/gMS for the 2014/15 season.

FONTERRA’S RECENT botulism scare has not dented customer confidence, says chairman John Wilson.

Fonterra has announced a final payout of $6.40/kgMS for the 2011-12 season, a drop of 19% over the previous year.

Jo Bills After a long period of relative stability, helped in part by increased frequency of auctions, it has been an action-packed month for the GlobalDairyTrade (GDT) platform.

FONTERRA CAN generate cash from within its business to finance growth but needs a stable capital base to do this, says chief executive Theo Spierings. He says TAF (trading among farmers) will ensure a strong capital base for Fonterra.

Fonterra is reducing its 2011-12 forecast payout by 15c/kgMS as a result of declining commodity prices and a soaring Kiwi dollar.