Fonterra shaves 50c off forecast milk price
Fonterra has dropped its forecast milk price mid-point by 50c as a surge in global milk production is putting downward pressure on commodity prices.
The Ministry of Foreign Affairs confirmed it has started the process of updating its regulations and removing the UN sanctions, which it expects to complete next month.
Fonterra managing director global ingredients, Kelvin Wickham says Iran is a valuable trading partner and a key butter market for Fonterra.
'The removal of the UN sanctions, and our Government's unwinding of restrictions, will only improve the outlook for us in Iran."
With a population of nearly 80 million and long-standing customer relationships in Iran, Fonterra expected continued growth in the market.
"Our customers in Iran are growing and we're seeing them make significant investments in infrastructure and capacity to meet demand," says Wickham.
"We have skilled people in the region who understand the opportunities and potential of doing business in Iran, and who welcome more normalised trade relations."
The UN Security Council recently endorsed a deal to end years of economic sanctions on Iran in return for curbs on its nuclear programme.
Sanctions are unlikely to be removed until next year, as the deal requires approval by the US Congress. Nuclear inspectors must also confirm that Iran is complying with the deal.
While the Iranian and US presidents have been promoting the accord, hardliners in Tehran and Washington have spoken out strongly against it.
However, many European companies have already shown interest in re-establishing business in Iran, with Germany sending its economy minister Sigmar Gabriel on the first top level government visit to Tehran in 13 years together with a delegation of leading business figures.
