Milk Glut Drags Fonterra Forecast Down to $9.20/kgMS
A milk glut around the world shows no sign of easing, putting downward pressure on farmgate milk prices for the next few months.
He told Rural News that the results give farmers confidence.
"A fully imputed interim dividend of 22 cents per share evidences our co-op's strong focus on return on capital," he says.
"Maintaining the forecast farmgate milk price midpoint for the current season at $10/kgMS with a narrowed range will give farmers confidence.
"Both a high milk price and solid earnings are a great outcome for farmer shareholders and council acknowledges the efforts by Miles Hurrell and his team."
Fonterra chief executive Miles Hurrell says it's pleasing to be able to deliver these results for farmer shareholders and unit holders.
"We're focusing on driving value which includes delivering strong financial performance while achieving the highest sustainable farmgate milk price," says Hurrell.
"At the same time, we're looking ahead as we implement our strategy and continue to invest for the future. We have commenced projects to unlock manufacturing production capacity for our Ingredients and Foodservice channels, with site works now underway at Studholme for high-value protein capacity and at Edendale for a new UHT cream plant.
"We're also continuing to invest to future proof our operations and supply chain network, with work underway on a new Whareroa coolstore and plans for decarbonisation projects."
