BNZ cuts forecast for Fonterra 2015/16 payout, citing weak international dairy prices

Fri, 13 Nov 2015

By Tina Morrison Nov. 13 (BusinessDesk) - Bank of New Zealand cut its forecast for Fonterra Cooperative Group's payout to farmers this season amid continued weakness in international dairy prices. BNZ reduced its forecast for the 2015/16 season to $4.50 per kilogram of milk solids from a previous estimate of $5/kgMS, pushing it below Fonterra's current projection of $4.60/kgMS. The cooperative is due to review its forecast by early December as part of government regulations. Whole milk powder prices, which are key to Fonterra's payout,...

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