November 1, 2007

Australia's milk co-op report drop in profits after drought payout
 

A AUS$10 million drought payment to its 2000 members has caused a 39-percent drop in profits for Australia's milk co-op Dairy Farmers.

The company posted an after tax profit of US$10.6 million for the 2007 finanical year.

Chief executive Rob Gordon says the results reflect a reasonable outcome, in what has been one of the worst drought years so far.

Farmgate milk prices have been lifted AUS$10 million while investment in branding continues to make sure milk supply is growing.

Gordon noted that milk supply grew 6.7 percent despite serious drought.