The Auckland-based dairy exporter expects to pay $NZ7.80 ($A6.86) per kilogram of milk solids to its farmer-shareholders, up from previous estimates of $NZ7.50 per kgMS, and maintain its predicted dividend of 32 NZ cents per share, it said in a statement on Tuesday.
Chairman John Wilson said the increase reflected continued strength in global prices.
«Current market views support commodity prices remaining at historically high levels longer than previously forecasted,» Mr Wilson said.
«The two most recent GDT (GlobalDairyTrade) events have seen prices hold and significant volumes sold.»
Fonterra expects to pay $NZ5.80 per kgMS to shareholder-suppliers in the 2013 season which finished at the end of July, with a forecast dividend of 32 NZ cents per share.
It will announce its annual result on September 25.
Units in the Fonterra Shareholders’ Fund, which gives outside investors exposure to the company’s earnings stream, increased 0.2 per cent to $NZ6.87, and have slipped 2.5 per cent this year.
Earlier this month, the world’s biggest dairy exporter found itself in the midst of an international food scare where some of its whey protein concentrate was contaminated with bacteria that could cause botulism, and it has faced temporary import bans on some of its products in certain jurisdictions.
Last week, it closed its Sri Lankan offices in the face of nationalist protests, and is working on how to prove its long-term commitment to that market.
The furore has sparked four separate inquiries, two by Fonterra, one by the NZ Ministry for Primary Industries and a ministerial review in a bid to shore up New Zealand’s reputation as a safe food producer.
Source: News.com.au
