Fonterra CFO Andrew Murray Resigns
Fonterra Co-operative Group chief financial officer Andrew Murray has resigned to take up a role outside the dairy giant.
He says the interim dividend of 10 cents/share and forecast range of 20-30c/share for the 2014-15 season is disappointing, especially given the current milk price.
Brown says farmers were expecting a higher dividend.
"That Fonterra has maintained the 2014-15 forecast farmgate milk price at $4.70/kgMS is a positive given the volatility experienced throughout the season to date however shareholders had an expectation that their cooperative would have delivered a higher dividend," says Brown.
"Shareholders rightfully want to see the strategy provide a return on their investment, especially given the low milk price environment Farmers are currently experiencing. A sound strategy is key to adding value long term and it is important that shareholders understand the factors that influence this."
Brown urged farmers to take the time to ask questions of their board and management at the farmer meetings next week; about 40 farmer meetings are scheduled around the country.
With the low milk price, Brown urged farmers to be prudent in their financial planning and to ensure they place their businesses in the best possible shape for next season.
