Fonterra launches $1500 on-farm funding for eligible farmers
Over 85% of Fonterra farmer suppliers will be eligible for customer funding up to $1,500 for solutions designed to drive on-farm efficiency gains and reduce emissions intensity.
Fonterra has confirmed its payout forecast range for the 2012/13 season of $5.90 - $6.00 before retentions for a fully shared up farmer, unchanged from the previous forecast range.
Fonterra is required to consider its Farmgate Milk Price every quarter as a condition of the Dairy Industry Restructuring Act (DIRA).
The cooperative confirmed today a forecast Farmgate Milk Price for the 2012/13 season of $5.50 per kilogram of milksolids, unchanged from the previous forecast. Fonterra's forecast Earnings Per Share range remains at 40-50 cents.
Fonterra Chief Executive Theo Spierings said dry weather conditions, particularly in the North Island, in mid-December and January had resulted in a slowdown in milk supply growth.
"We had a strong start to the season and milk collection volumes were running 6% ahead of last season on a year-to-date basis," says Spierings. "However, the dry conditions mean we are currently forecasting total milk collection volumes to finish approximately 1% ahead for the full season."
Global dairy prices remained relatively flat through December and January, with the GDT-TWI increasing by 2% over this period. The index has since gained 5% in February. Given current global conditions, our Farmgate Milk Price forecast anticipates global dairy prices are likely to move higher in the second half of the season.
The current Farmgate Milk Price forecast of $5.50 kgMS is based on no substantial change to the current exchange rate for the rest of the season. If there was a further significant strengthening of the New Zealand dollar against the USD then this may adversely impact on the forecast Farmgate Milk Price.
Labour's agriculture spokesperson Jo Luxton says while New Zealand needs more housing, sacrificing our best farmland to get there is not the answer.
Profitability issues facing arable farmers are the same across the world, says New Zealand's special agricultural trade envoy Hamish Marr.
Over 85% of Fonterra farmer suppliers will be eligible for customer funding up to $1,500 for solutions designed to drive on-farm efficiency gains and reduce emissions intensity.
Tighter beef and lamb production globally have worked to the advantage of NZ, according to the Meat Industry Association (MIA).
Groundswell is ramping up its 'Quit Paris' campaign with signs going up all over the country.
Some farmers in the Nelson region are facing up to five years of hard work to repair their damaged properties caused by the recent devastating floods.
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