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.

More like this

Milk Powder Prices Prop Up Farmgate Milk Price

Milk powder prices are keeping farmgate prices up, helping processors offset the dip in milk fat prices.

Fonterra's New Roadmap Targets Climate, Nature, Animals

Climate, nature and animal wellbeing make up Fonterra's refreshed sustainability roadmap released last week.

Once-a-Day Calf Feeding: How Probiotics Boost Heifer Growth

Matt Collier, Probiotic Revolution, says calves will drink a lot of milk once-a-day with their probiotic Calf Xtreme.

El Niño Summer: Terravest on Preparing Dairy Sheds Now

After a winter of frozen pipework and refrigeration call-outs, Terravest chief executive Kip Bodle and chief operating officer Luke Walker explain why this El Niño summer calls for a different kind of preparation, before the first heatwave finds the weak points for you.

What Would Synlait Be Worth to Fonterra or a2 Milk?

Speculation of a possible joint move by Fonterra and a2 Milk to buy Synlait raises a much bigger strategic question, says agribusiness expert Dr Nic Lees.

Featured

DairyNZ's Tracy Brown Flags El Nino Risk for Dairy Farms

Most dairy regions around the country have had a pretty good season so far says Tracy Brown.

Mark Hooper Joins NZPork Board as Independent Director

Rural leader Mark Hooper has been appointed as an independent director to the NZPork board, bringing extensive farming, governance and advocacy experience to the role.

Opportunity Says Land Tax Won't Force Farm Asset Sales

Opportunity says its land value tax (LVT) is unlikely to force farmers into a position where asset sales or increased debt are required.

Milk Powder Prices Prop Up Farmgate Milk Price

Milk powder prices are keeping farmgate prices up, helping processors offset the dip in milk fat prices.

Fonterra's New Roadmap Targets Climate, Nature, Animals

Climate, nature and animal wellbeing make up Fonterra's refreshed sustainability roadmap released last week.

New Rural Recycling Scheme to Boost Farm Plastic Recovery

The Government is introducing a new nationwide rural recycling scheme that will significantly increase the recovery of farm plastics from March next year, Minister for the Environment Nicola Grigg announced today.