#NZ's Fonterra lifts dairy price payout forecast

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New Zealand’s Fonterra, the world’s biggest dairy processor, said it expected to increase the payout to farmer shareholders next season as solid demand and tough global weather conditions underpins global prices.


The farmer-owned co-operative, the country’s largest company, set its opening forecast, before retentions, for the 2013/14 season at NZ$7.00 ($5.66) per kilogram of milk solids.
It confirmed its payout for the season just ending at NZ$5.80 per kilogram of milk solids, for a payout of NZ$6.12. This was lower than a final payout of NZ$6.40 for the 2011/12 season.
International dairy prices have climbed while volumes have fallen in the past few months as a drought in key North Island dairying regions has cut milk production.
Fonterra is owned by about 10,500 farmers and controls about one-third of the world’s dairy exports, generating more than 7 percent of New Zealand’s gross domestic product.
Last November it launched a shareholders’ fund as part of a wider scheme to boost its capital structure and free up cash for expansion.
The fund converts the dividends from Fonterra shares into units, which are available for outside investors, but ownership of the shares remains with dairy farmers. ($1 = 1.2369 New Zealand dollars) (Reporting by Naomi Tajitsu)
 
Source: Reuters

Mirá También

Así lo expresó Domingo Possetto, secretario de la seccional Rafaela, quien además, afirmó que a los productores «habitualmente los ignoran los gobiernos». Además, reconoció la labor de los empresarios de las firmas locales y aseguró que están «esperanzados» con la negociación entre SanCor y Adecoagro.

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