Fonterra to offload iconic brands
Fonterra says the sale of its global consumer business and its Oceania and Sri Lankan operations could take 18 months to complete.
Fonterra has announced an opening forecast of $6.50/kgMS for the 2017-18 season which starts June 1.
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.”
A Taranaki dairy farmer received four-month home detention and was disqualified from overseeing of animals for 18 months over a lack of feed and welfare which led to some animals being euthanised.
Plans are in place to celebrate the 100th anniversary of the legendary Flock House opening its doors for the first time.
The mood in horticulture is cautiously optimistic, according to the chair of Horticulture NZ, Barry O'Neil.
New Zealand’s major primary industry exporters have secured shipping capability to export $160 billion worth of products over the next 10 years.
The mood in the deer industry is very positive and on an upwards trajectory.
Trade and Agriculture Minister Todd McClay says the Government is always working to ensure that our food exporters are treated fairly under trade agreements signed with other countries.