Expert Says Fonterra Backing Current Strategy With New CEO Appointment
The appointment of Richard Allen as Fonterra's new chief executive signals execution, not strategy, according to agribusiness expert Dr Nic Lees.
In addition, the listed Canterbury processor paid out an average of $0.27/kgMS was paid for incentives, taking the total average milk payment for 2022-23 to $8.49/kgMS.
The base milk price is down from Synlait’s highest payout, $9.30/kgMS, in the prior season.
The company says commodity prices corrected downwards across the 2022-23 season in response to recovering global supplies and softening demand.
Synlait is sticking to its $7/kgMS forecast milk price for this season.
“Increases in the last two Global Dairy Trade events, after a period of significant downward pressure, means Synlait can confirm that its base milk price forecast for the 2023-24 season will remain at $7/kgMS,” it says.
Fonterra last week also delivered a final 2022-23 season farmgate milk price of $8.22/kgMS.
The co-op also announced a strong full year dividend of 50c/share – comprising an interim dividend of 10c/share and a final dividend of 40c/share.
The co-op also pointed out that it recently returned tax free 50c/share to shareholders and unit holders in August, following the divestment of Soprole, giving a final cash pay-out to farmers of $9.22/share backed kgMS.
Fonterra has a forecast 2023/24 Farmgate Milk Price range of $6-$7.50/kgMS, with a midpoint of $6.75, reflecting “reduced demand for whole milk powder from key importing regions”.
