Wednesday, 12 November 2014 11:18

Payout is priority

Written by 
Theo Spierings addresses the AGM. 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.

More like this

Aussie farmers get A$8.60/kgMS as opening milk price

Australian dairy farmers supplying Fonterra are getting an opening weighted average milk price of A$8.60/kgMS for the new season or around NZ$9.26/kgMS -  NZ74c less than New Zealand suppliers, based on the current exchange rate.

Featured

LIC Space folds for good

Farmer co-operative LIC has closed its satellite-backed pasture measurement platform – Space.

Editorial: Time for common sense

OPINION: The case of four Canterbury high country stations facing costly and complex consent hearing processes highlights the dilemma facing the farming sector as the country transitions into a replacement for the Resource Management Act (RMA).

National

Machinery & Products

Calf feeding boost

Advantage Plastics says it is revolutionising calf meal storage and handling, making farm life easier, safer, and more efficient this…

JD's precision essentials

Farmers across New Zealand are renowned for their productivity and efficiency, always wanting to do more with less, while getting…

» Latest Print Issues Online

The Hound

Are they serious?

OPINION: The Greens aren’t serious people when it comes to the economy, so let’s not spend too much on their…

A hurry up!

OPINION: PM Chris Luxon is getting pinged lately for rolling out the old 'we're still a new government' line when…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter