Wednesday, 12 November 2014 11:18

Payout is priority

Written by Sudesh Kissun

font size decrease font size increase font size
Print
Email

Theo Spierings addresses the AGM.

FONTERRA IS assuring farmers that the milk payout will remain its main priority.

Speaking at the co-op's annual meeting in Palmerston North this morning, Fonterra chairman John Wilson said the co-op is always striving to improve total payout to farmers.

"Our payout strategy will never change," he says.

Wilson acknowledged that on-farm cash flow is tight given the sharp drop in payout compared to last year.

Fonterra is forecasting $5.30/kgMS this season. Last season farmers received $8.50/kgMS - comprising a milk price of $8.40 and 10/share dividend.

Wilson says tight cash flow will force farmers to reduce feed and supplements in summer; more cows are also expected to be culled.

This will impact milk production for this season and next season. Fonterra's milk supply this season is up 3% compared to last season.

Featured

Boost for hort exports

The horticulture sector is a big winner from recent free trade deals sealed with the Gulf states, says Associate Agriculture Minister Nicola Grigg.

Eroding share of milk worries Fonterra shareholders

Fonterra shareholders are concerned with a further decline in the co-op’s share of milk collected in New Zealand.

Better animal genetic gain system

A governance group has been formed, following extensive sector consultation, to implement the recommendations from the Industry Working Group's (IWG) final report and is said to be forming a 'road map' for improving New Zealand's animal genetic gain system.

Managing risk for sharemilkers, contract milkers

Free workshops focused on managing risk in sharefarming got underway last week.

SIDE 2025's new schedule, venue

Annual farmer gathering, the South Island Dairy Event (SIDE), is set to make history as it heads to Timaru for the first time.

Taranaki piggery goes solar

Installing 400 solar panels at their Taranaki piggery and cropping operation will have significant environmental, financial and animal welfare benefits for the Stanley family.

National

The show is on!

It was bringing in a new Canterbury A&P Association (CAPA) show board, more in tune with the CAPA general committee,…

Forestry cuts into stock numbers

There is an urgent need for the Government to put a limit on the sale of farms for forestry -…

National catchment advocacy group elects first chair

A North Canterbury farmer has been elected as the first chair of Aotearoa New Zealand Catchment Communities (ANZCC).

New tricks from food science at international conference

Can discarded beef skins become premium dog food? Would camel milk work for your morning flat white? These are just…

Food charity to hold online auction

Meat the Need, New Zealand’s dedicated charity delivering locally sourced protein meals to food-insecure communities, is launching an online National…