Fonterra, Sharesies join to make share trading easier
Fonterra is teaming up with wealth app provider Sharesies to make it easier for its farmer shareholders to trade co-op shares among themselves.
The 2014-15 season will be a season to forget for Fonterra farmers.
This morning the co-op dropped its milk payout for the season by 10c to $4.40/kgMS; with its previously announced forecast dividend range of 20-30 cents per share, the change amounts to a forecast cash payout of $4.60 - $4.70/kgMS for a fully shared-up farmer.
However, there was a silver lining to the announcement; the co-op has announced an opening forecast for the 2015-16 season, which starts June 1, of $5.25/kgMS; this does not include the forecast dividend payout which will be announced later.
Fonterra chairman John Wilson says the revised 2014-15 forecast reflected the reality that global commodity prices had not increased as expected.
"World markets are over-supplied with dairy commodities after farmers globally increased production in response to the very good prices paid 12-18 months ago. This supply imbalance has heightened due to continuing good growing conditions in most dairy producing regions.
"This is a tough season and we will continue to keep our farmers informed as the season draws to a close given the current volatility," says Wilson.
Wilson says the opening forecast milk price was based on Fonterra's best view of long-term global dairy supply and demand.
"We can expect prices to recover going forward, and to see a rebalancing of supply and demand over the season. However it is more difficult this early in the season to determine exactly when this recovery will lead to a sustained price improvement," says Wilson.
Chief executive Theo Spierings says the long-term fundamentals of global dairy demand are strong.
"Our forecast for the new season takes into account a range of factors including global milk production forecasts, the economic outlook of major dairy importers, current inventory levels and geopolitical events," says Spierings.
"Given the season we are coming out of, we are absolutely focused on improving farmer returns and driving the cooperative's performance," says Spierings.
The Advance Rate will begin at 70% of the forecast farmgate milk price, with an opening rate of $3.66/kgMS.
Federated Farmers is throwing its support behind the Fast-track Approvals Bill introduced by the Coalition Government to enable a fast-track decision-making process for infrastructure and development projects.
The latest report from ANZ isn’t good news for sheep farmers: lamb returns are forecast to remain low.
Divine table grapes that herald the start of a brand-new industry in Hawke’s Bay have been coming off vines in Maraekakaho.
In what appears to be a casualty of the downturn in the agricultural sector, a well-known machinery brand is now in the hands of liquidators and owing creditors $6.6 million.
One of New Zealand’s deepest breeder Jersey herds – known for its enduring connection through cattle with the UK’s longest reigning monarch, Queen Elizabeth II – will host its 75th anniversary celebration sale on-farm on April 22.
Rural trader PGG Wrightson has revised its operating earnings guidance, saying trading conditions have deteriorated since the last market update in February.