Sugar hit
OPINION: Winston Peters has described the decision to sell its brand to Lactalis and disperse the profit to its farmer shareholders as a 'short sighted sugar hit'.
Miraka chief executive Karl Gradon says he expects the company's milk suppliers will be pleased with the strong 2024-25 season price update.
"Our farmers have experienced a difficult and challenging period, with lower commodities over time and higher operating expenses and interest rates.
"We're supporting them with a strong 2024/25 season forecast milk price."
Miraka's milk price is 17c above Fonterra's mid-point for the season.
Miraka's 2023-24 final milk payout is $8/kgMS. Fonterra's final Farmgate Milk Price for the 2023/24 season finished at $7.8/kgMS. This, combined with the 55 cents per share dividend, provides a total cash payout to a fully shared-up farmer of $8.38/kgMS. The dividend includes a special 15c return to farmers.
Fonterra Co-operative Council chair John Stevenson says the special dividend of 15 cents per share, on top of interim and final dividends totalling 40 cents per share, demonstrates the strength of Fonterra's balance sheet.
Read More
- Milk powder prices up in latest GDT auction
- Miraka lands A2 deal
- Record number of Miraka suppliers qualify for 20c premium
"In addition, the special dividend is a welcome acknowledgement of the tough times faced by shareholders in the relatively recent past when the returns from ownership were not adequate."
