Thursday, 13 November 2014 11:37

Council backs payout decision

Written by 

FONTERRA SHAREHOLDERS Council says it backs the co-op's decision to pay a lower milk price last year than the price calculated in accordance with the milk price manual.

The co-op paid 53c/kgMS less than what was calculated in accordance with the panel.

Despite being short-paid, Fonterra farmers received a record payout of $8.40/kgMS.

Speaking at the co-op's annual meeting in Palmerston North yesterday, council chairman Ian Brown says it was the right decision.

"The council questioned the rationale for and the effect of the board's decision and after discussions with the board and management we are satisfied with the explanation for this," he says.

"The council's view is that borrowing money to distribute revenue that was not earned in order to meet the milk price panel's recommendation would not have been in the best interest of our farmers.

"The milk price is of such importance to our farmers that any movement away from the price outlined by the manual, positive or negative, must be scrutinised and the board must be very clear in their justification for any change."

He noted that the farmgate milk price provides farmers with an accurate signal from which to make decisions around on-farm production and cost.

It also drives the co-op management to work to ensure the maximum sustainable payout to farmers is realised, he adds.

"The council has the utmost confidence in the manual and believe it is robust and transparent," Brown says.

More like this

No backing down

OPINION: Fonterra isn't backing down in its fight with Greenpeace over the labelling of its iconic Anchor Butter.

Entitled much?

OPINION: For the last few weeks, we've witnessed a parade of complaints about New Zealand's school lunch program: 'It's arriving late.' 'The portions are wrong.' 'I wanted caviar.'

Fonterra mulls options - sale or IPO

An outright sale of Fonterra’s global consumer business is more likely than a float, says Forsyth Barr senior analyst equities, Matt Montgomerie.

Fonterra updates earnings

Fonterra says its earnings for the 2025 financial year are anticipated to be in the upper half of its previously forecast earnings range of 40-60 cents per share.

Featured

People expos set to return

Building on the success of last year's events, the opportunity to attend People Expos is back for 2025, offering farmers  the chance to be inspired and gain more tips and insights for their toolkits to support their people on farm.

SustaiN lands NZ registration

Ballance Agri-Nutrients fertiliser SustaiN – which contains a urease inhibitor that reduces the amount of ammonia released to the air – has now been registered by the Ministry of Primary Industries (MPI). It is the first fertiliser in New Zealand to achieve this status.

National

The Cook Islands squabble

The recent squabble between the Cook Islands and NZ over their deal with China has added a new element of…

Machinery & Products

Nedap NZ launch

Livestock management tech company Nedap has launched Nedap New Zealand.

Landpower win global award

Christchurch-headquartered Landpower and its Claas Harvest Centre dealerships has taken out the Global After Sales Excellence award in Germany, during…

» Latest Print Issues Online

Milking It

O Canada

OPINION: Donald Trump's focus on Canada is causing concern for the country’s dairy farmers.

Plant-based fad

OPINION: The fact that plant-based dairy is struggling to gain a market foothold isn’t deterring new entrants.

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter