"Our" business?
OPINION: One particular bone the Hound has been gnawing on for years now is how the chattering classes want it both ways when it comes to the success of NZ's dairy industry.
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.
