Wednesday, 19 November 2014 08:37

Milk payout under pressure

Written by 
Milk payout under pressure

MILK PAYOUT to Fonterra suppliers is under more pressure after this morning's Global Dairy Trade auction results.

The latest GDT auction result saw the average price index down 3.1% compared to the last auction.

Fonterra's board meets early next month to review the $5.30/kgMS milk payout; a further cut is now almost certain.

In a worrying sign for Fonterra farmers, the price of whole milk powder- the flagship product- was down 5.1% over the previous auction. Skim milk powder price was also down a whopping 5.7%.

Fonterra's current forecast price consists of a $5.30/kgMS milk price and a dividend range of 25 to 35c. For a fully shared up farmer, this translates into a payout of $5.55 to $5.65 for the season. Last season Fonterra paid a record $8.40/kgMS milk price and a dividend of 10c/share.

More like this

No backing down

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.

Popular Reads

No buyers

No buyers

OPINION: Australian dairy is bracing for the retirement of an iconic dairy brand.

GMO deregulation risky for farmers

OPINION: Recent progress in methods for gene manipulations suggests exciting new possibilities in medicine and agriculture, but significant risks remain…

Top dairy CEO quits

Arguably one of the country's top dairy company's chief executives, Richard Wyeth has abruptly quit Chinese owned Westland Milk Products…
back to top

Featured

People expos set to return

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

Good just got great

Good just got great

Already well respected in the UTV sector for performance, reliability and a competitive price point, CFMOTO has upped the ante…

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

dairynewscover
ruralnewscover
winegrowercover

Visit archives

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