Medals galore for Fonterra cheeses
Fonterra cheeses are continuing their golden run at the annual New Zealand Cheese Awards.
Fonterra is maintaining its forecast farmgate milk payout of $4.70/kgMS this season.
However, the co-op has lowered its forecast dividend to 20-30 cents/share, resulting in a forecast cash payout of $4.90 - $5.00/kgMS.
The co-op announced its half-year results in Auckland this morning; a 10c cent interim dividend was declared.
Fonterra chairman John Wilson says that given the results achieved in the first half of the year and the continued volatility in international prices, the co-op is holding its forecast milk payout.
Revenue for six months ending January 2015 reached $9.7 billion, down 14% over the same period last year.
Net profit after tax (NPAT) was $183 million, down 16%.
Wilson says the half-year results are below farmers' expectations "in a period when the Farmgate Milk Price is low and we are reducing the forecast dividend range."
"Our half-year results are a snapshot of tough conditions in dairy with variable production, demand and pricing," says Wilson.
"There was also the challenge of generating profit from inventory made in the previous financial year when the cost of milk was higher, but sold in the first quarter of the financial year when global dairy prices were falling.
"In New Zealand, milk production got off to an excellent start. A very dry summer in most regions curtailed production in the last three weeks of January, with the cooperative reducing its milk volume forecast to slightly below last season's production.
The co-op's current milk supply forecast for the 2014-15 season has increased to 1,551m kgMS, 2% per cent below the 2013-14 season.
Analysis by Dunedin-based Techion New Zealand shows the cost of undetected drench resistance in sheep has exploded to an estimated $98 million a year.
Shipping disruption caused by Houthi rebels in the Red Sea has so far not impacted fertiliser prices or supply on farm.
The opportunity to spend more time on farm while providing a dedicated service for shareholders attracted new environmental manager Ben Howden to work for Waimakariri Irrigation Limited (WIL).
Federated Farmers claims that the Otago Regional Council is charging ahead unnecessarily with piling more regulation on rural communities.
Dairy sheep and goat farmers are being told to reduce milk supply as processors face a slump in global demand for their products.
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