Winston Peters calls Fonterra vote result 'utter madness'
New Zealand First leader and Foreign Affairs Minister Winston Peters has blasted Fonterra farmers shareholders for approving the sale of iconic brands to a French company.
 Chairman John Wilson says the stable forecast reflects the board's and management's view that international prices will continue to improve in the first half of next year.
		  	
		  
		  		  
		  Chairman John Wilson says the stable forecast reflects the board's and management's view that international prices will continue to improve in the first half of next year.
		  
		  
		  
	  Fonterra today maintained a forecast farmgate milk price of $4.60/kgMS.
Along with the November announced estimated earnings per share range of 45-55 cents, this amounts to a total available for payout of $5.05-$5.15/kgMS and would currently equate to a total forecast cash payout of $4.95-$5/kgMS.
Fonterra is required to consider its forecast farmgate milk price every quarter as a condition of the Dairy Industry Restructuring Act (DIRA).
Chairman John Wilson says the stable forecast reflects the board's and management's view that international prices will continue to improve in the first half of next year.
"We are looking out over the next nine months and basing our forecast on the view that current, unsustainably low prices will continue to impact production levels globally.
"We support the consensus view in the market that an improvement will take place, but the market remains volatile. While there are signs of a recovery, particularly in China, we still need the imbalance between supply and demand to correct."
Wilson says the imbalance is starting to reduce with year-to-date production in the United States up by only 1% and slowing, and New Zealand volumes expected to be down by at least 6% over the current season. "In the EU, however, farmers are continuing to push production, currently up 1%."
Fonterra's Board also reviewed the Fonterra Cooperative Support loan. The loan was made available on production from June 1 to December 31. The loan of 50c/kgMS is interest-free until May 31, 2017 with repayments triggered when the farmgate milk price exceeds $6/kgMS.
Wilson says the board's scheduled review weighed up the improved farmgate milk price and higher earnings per share forecast since the loan was launched, when the milk price was at $3.85, and the need for financial discipline from the co-op.
The board had decided not to continue the cooperative support loan for milk collected after December 31, but will monitor conditions and assess the need to continue the support if market conditions changed later in the season.
"We will provide some $390 million in support to around 75% of our farmers through the most productive half of the season, including the peak. Farms typically produce 60% of their milk in the first half, with production beginning to taper off from December, so we have provided support when it is needed the most."
The Ashburton-based Carrfields Group continues to show commitment to future growth and in the agricultural sector with its latest investment, the recently acquired 'Spring Farm' adjacent to State Highway 1, Winslow, just south of Ashburton.
New Zealand First leader and Foreign Affairs Minister Winston Peters has blasted Fonterra farmers shareholders for approving the sale of iconic brands to a French company.
A major feature of the Ashburton A&P Show, to be held on October 31 and November 1, will be the annual trans-Tasman Sheep Dog Trial test match, with the best heading dogs from both sides of the Tasman going head-to-head in two teams of four.
Fewer bobby calves are heading to the works this season, as more dairy farmers recognise the value of rearing calves for beef.
The key to a dairy system that generates high profit with a low emissions intensity is using low footprint feed, says Fonterra program manager on-farm excellence, Louise Cook.
Rural retailer Farmlands has reported a return to profitability, something the co-operative says shows clear progress in the second year of its five-year strategy.
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