Thursday, 28 January 2016 15:04

Payout drop delivers ‘a sobering blow’

Written by 
Fonterra Shareholders Council chairman, Duncan Coull. Fonterra Shareholders Council chairman, Duncan Coull.

Fonterra Shareholders Council says the co-op's 45c drop in the 2015-16 forecast payout is a sobering blow to farmers.

Council chairman, Duncan Coull, says today's announcement of a 45 cent fall in the 2015-16 forecast Farmgate Milk Price, from $4.60/kgMS to $4.15/kgMS, is one that will further amplify the effects of the current low milk price environment on Farmers and their businesses.

"Farmers are very aware that this is a global story which is now having a significant local effect. Strong supply out of Europe coupled with flat demand is driving market sentiment as evidenced by the GDT results.

"While acknowledging that the milk price is something that is largely out of our co-op's control, farmers are always looking to the Board to communicate any significant price fluctuations that occur throughout the season in a very timely manner.

"Looking forward our Farmers will be expecting our co-operative model, which sees shareholders benefit from milk price and the value-add side of the business, to deliver for them in terms of the total available for payout.

"In the interim I encourage farmers to sit down with their rural professionals and seek guidance on how best to navigate through these tough times.

"Of equal importance is that they stay connected to their communities, and engaged with their co-op, especially in the current environment."

More like this

Fonterra R&D: Innovation needs more than just PhDs

Common sense and good human judgement are still a key requirement for the super highly qualified staff working at one of New Zealand's largest and most important research facilities - Fonterra's R&D Centre at Palmerston North.

Featured

LIC ends year with $30.6m profit

Herd improvement company LIC has ended the 2024-25 financial year in a strong position - debt-free and almost quadrupling its net profit.

Farmers back Government pause on RMA plan changes

There's been widespread support from the primary sector for the Government's move to put the brakes on local authorities to do any more work on planning changes ahead of major changes to the Resource Management Act (RMA).

Flood-hit Tasman farms begin long recovery

People affected by the recent two severe flood events in the Tasman district are weary and exhausted trying to deal with the devastation on their farms and orchards, according to the head of the Rural Support Trust (RST) in the region.

National

Machinery & Products

Fliegl offers effluent solutions

Founded in Germany as recently as 1977, today, the Fliegl Group employs more than 1100 workers, offering an expansive range…

» Latest Print Issues Online

Milking It

It's all about economics

OPINION: According to media reports, the eye-watering price of butter has prompted Finance Minister Nicola Willis to ask for a…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter