Tuesday, 15 March 2016 06:55

Help on the way?

Written by Sudesh Kissun

font size decrease font size increase font size
Print
Email

Fonterra chairman John Wilson says at its half-year result announcement the co-op will say how it will assist farmers in "a small way".

Struggling Fonterra farmers must wait until March 23 to find out what more support they will get from the co-op.

However, farmers who already have an interest-free loan from the co-op should not expect much.

Fonterra chairman John Wilson says at its half-year result announcement the co-op will say how it will assist farmers in "a small way".

Last week, the co-op dropped its forecast milk payout for the season by 25c, from $4.15/kgMS to $3.90/kgMS. Combined with the forecast earnings per share range of 45-55 cents, this means a total forecast available for payout of $4.35-$4.45/kgMS. This equates to a forecast cash payout of $4.25-$4.30/kgMS for a fully shared-up farmer after retentions.

Wilson says the drop in payout is the last thing farmers want to hear in this challenging season.

"At times like this the business needs to do everything it can to drive every last cent back to farmers.

"Management is focused on reducing cost and generating cash right across the business. The continuing lift in financial performance and our balance sheet strength will provide opportunities to support our farmers' cashflows. We will provide an update on this with our interim results on March 23," says Wilson.

Fonterra farmers are also putting the co-op on notice.

Shareholders Council chairman Duncan Coull says farmers now need

More like this

New UHT plant construction starts

Construction is underway at Fonterra’s new UHT cream plant at Edendale, Southland following a groundbreaking ceremony recently.

Synlait lifts milk price to $10

Canterbury milk processor Synlait Milk has lifted its forecast base milk price for the season by 50c to $10/kgMS.

Fonterra's $64m investment to cut emissions by 9%

Fonterra is set to convert two coal boilers to wood pellets at its Clandeboye site in South Canterbury, a crucial step in Fonterra's commitment to exit coal by 2037.

Chilled milk partnership

Last month marked one year since the launch of an innovative collaboration known as the PAUS Programme (Pay- As-You-Save), which has made it easier for Fonterra farmers to access next generation milk chilling technology.

Fonterra ‘on track’ to meeting climate change, coal targets

Fonterra says it remains on track to meet its climate targets and be coal free in its North Island manufacturing.

Featured

Temptation Valley makes a splash

Later this month, Ardgour Valley Orchards apricots will burst onto the world stage and domestic supermarket shelves under the Temptation Valley brand.

PETA wants web cams in shearing sheds

Animal rights protest group PETA is calling for Agriculture Minister Todd McClay to introduce legislation which would make it mandatory to have live-streaming web cameras in all New Zealand shearing shed.

'End red tape'

ACT MP and farmer Mark Cameron is calling on Parliament to thank farmers by reinstating provisions within the Resource Management Act that prevent regional councils from factoring climate change into their planning.

Fires restricted in Waikato and Northland

Fire and Emergency New Zealand (FENZ) has declared restricted fire seasons for the Waikato, Northland and Canterbury.

Mixed results on GDT

The first Global Dairy Trade (GDT) auction drew mixed results, with drop in powder prices and lift in butter and cheeses.

'Give hunters a say on conservation' - ACT

ACT Party conservation spokesperson Cameron Luxton is calling for legislation that would ensure hunters and fishers have representation on the Conservation Authority.