Fonterra H1 sales grow 9.6 percent

Fonterra's first-half sales rose 9.6 percent to NZ$8 billion, reflecting a change in balance date and as the weaker New Zealand dollar boosted returns.

The results marked an improvement from the six-month period ended November 30, 2007, when Fonterra's sales reached NZ$7.3 billion.

Adjusting for the different sales period and foreign exchange gains, sales fell 7.6 percent as global prices declined.

Adjusting for the different sales period and foreign exchange gains, sales fell 7.6 percent as global prices dropped.

World prices of dairy products have dropped about 57 percent from record highs 15 months ago, as the slowing global economy curbed demand and the US and the EU increased dairy exports.

Fonterra, which accounts for about 40 percent of the global dairy trade, had slashed its New Zealand milk price forecast three times in the four months through January.

The 10,700 New Zealand farmers who own and supply the company may get about NZ$5.10 for each kg of milk solids produced in the season ending May 31, Fonterra said. That is 35-percent less than the record NZ$7.90 received last year.

US$1 = NZ$1.75565 (Mar 24)