August 20, 2010

Fonterra Shareholders' Council welcomes steady price forecast

The Fonterra Shareholders' Council welcomes the co-operative's announcement that the forecast milk payment to Fonterra farmers remains unchanged.

Fonterra has forecast the total amount available for payout for the 2010/11 season will be NZD6.90-7.10 (US$4.91-5.05) per kilogram of milksolids (kgMS) before retentions. The forecast is made up of NZD6.60 (US$4.69) per kilogram of milksolids (kgMS) and forecast Distributable Profit of 30-50 cents per share, before retentions. 

"Many farmers are still feeling the impact of the recession and the recent drought, so the prospect of the payout for the current season staying at these levels is helpful," said Shareholders' Council Chair Simon Couper.

"For many Fonterra farmers, it is a time of consolidation and so the recovery from the 2008/09 year will be valuable," he said.

"The continued positive forecast for the current season which has just begun is encouraging, but international markets are volatile and farmers will be mindful of managing their farm businesses carefully so they are ready for any change," he said.

The final payout for the 2009/10 dairy season will be announced in September.