Fonterra's record forecast organic milk price
Fonterra has announced a record forecast opening organic milk price of $12.30/kgMS for the new season.
Fonterra farmers have received several pieces of good news this morning.
The co-op has lifted its 2024/25 forecast Farmgate Milk Price midpoint to $9/kgMS and unveiled a FY25 earnings guidance of 40-60 cents per share.
It has also announced a total dividend of 55c/share for the 2024 financial year.
Chief executive Miles Hurrell says the lift in this season’s forecast milk price follows further recent strengthening in Global Dairy Trade prices and constrained milk supply in key producing regions.
“I’m pleased to be announcing an increase in this season’s forecast Farmgate Milk Price, which I’m sure will be welcome news for farmers, particularly when combined with the 55 cent total dividend for FY24 also announced by the co-op today,” says Hurrell.
Fonterra’s new forecast Farmgate Milk Price range for the 2024/25 season is $8.25-$9.75/kgMS, with the co-op continuing to maintain the wide range due to the relatively early stage of the season.
“We’ve also announced today our forecast earnings for FY25 of 40-60 cents per share,” says Hurrell.
“The forecast earnings range reflects an expectation we will maintain strong margins in all three of our sales channels, while also investing in the Co-op’s IT & digital transformation and incurring higher tax expenses,” he says.
Fonterra also announced that, after several years of strong earnings performance, the co-op exhausted its tax losses in FY24 and will now be paying tax.
Chief Financial Officer Andrew Murray says that “as a result of this change, when we declare a dividend from FY25 and beyond, imputation credits will now be available to be attached to our dividend.
“To enable all shareholders to receive the imputation credits, we are changing how we treat supply backed shares for tax purposes which means that more tax will be paid by Fonterra.
“While this does not impact the operating performance of Fonterra, it will reduce our reported earnings per share in future years, as Fonterra will have paid the tax on the cash to be distributed,” says Murray.
Fieldays 2025 opens this week with organisers saying the theme, 'Your Place', highlights the impact the event has on agriculture both in the Southern Hemisphere and across the globe.
Sam Carter, assistant manager for T&G's Pakowhai Sector, has been named the Hawke's Bay 2025 Young Grower of the Year.
The CEO of Apples and Pears NZ, Karen Morrish, says the strategic focus of her organisation is to improve grower returns.
A significant breakthrough in understanding facial eczema (FE) in livestock brings New Zealand closer to reducing the disease’s devastating impact on farmers, animals, and rural communities.
Farmer co-operative LIC has closed its satellite-backed pasture measurement platform – Space.
OPINION: The case of four Canterbury high country stations facing costly and complex consent hearing processes highlights the dilemma facing the farming sector as the country transitions into a replacement for the Resource Management Act (RMA).
OPINION: The Free Speech Union is taking this one too far.
OPINION: New national data from The Drug Detection Agency (TDDA), a leading workplace drug tester, shows methamphetamine (meth) use is…