February 25, 2005

 

 

Australia's National Foods announces half year profit

 

Australian dairy giant National Foods has announced a half year profit result of A$39 million after tax.

 

The 16 per cent rise comes in the middle of a takeover stoush between New Zealand company Fonterra and Philippine brewer San Miguel.

 

Nat Foods has spent A$14 million responding to the takeover bids.

 

A company spokesman says new product ranges have helped to boost the bottom line, but that doesn't automatically mean a pay rise for farmers.

 

Contracts with farmers are negotiated on a 12-month basis, and new discussions with farmers will focus on starting new contracts come July 1.

 

Also, Sydney-based milk processor Dairy Farmers says unprecedented overseas demand for high-value products is responsible for pushing up the milk prices paid its farmer suppliers.

 

The co-operative has announced a step-up of 2 to 3.5 cents a litre, along with an increase in incentive payments.

 

Chairman Ian Zandstra says the high Aussie dollar has failed to dampen international demand.

 

So far, products such as powder and cheese have hit the highest prices ever on the international market in US dollar terms, giving Australia a favourable positioning internationally

 

A high Aussie dollar remains the biggest obstacle but a weakening could lift future prospects for exports.