Fonterra trims board size
Fonterra’s board has been reduced to nine - comprising six farmer-elected and three appointed directors.
The co-op says the strong opening forecast is a further signal of confidence in the market outlook.
The forecast earnings range for the 2018 financial year will be announced around the beginning of August.
The co-op has also lifted the 2016-17 payout by 15c to $6.15/kgMS.
“The increase in the forecast Milk Price for the current season and the improved forecast for 2017-18 will be welcome news for our farmers following two challenging seasons on farm,” Fonterra chairman John Wilson says.
“Stronger production in March and April has partly offset lower peak milk production and collections are now expected to be down 3% for the season, a much better outcome for our farmers than had been anticipated earlier in the year.”
The Global Dairy Trade (GDT) auction’s price index has enjoyed five consecutive rises.
“World dairy prices have risen in recent months and as we near the end of the season we have more visibility and certainty which makes us confident of our $6.15 position,” Wilson says.
Fonterra has also confirmed its forecast earnings per share range of 45 to 55 cents for the 2017 financial year, as it continues to target a dividend of 40 cents per share.
“Some of the challenges we faced in the third quarter could continue, but the business is committed to a strong fourth quarter particularly in Ingredients sales. This means we have been able to confirm the earnings per share range and full year target dividend,” says Wilson.
“The higher forecast Farmgate Milk Price of $6.15 per kgMS and the target dividend of 40 cents per share gives a forecast cash payout of $6.55 for a 100% shared-up farmer which is good news for our farmers and their communities.”
