BUSINESS BREAKDOWN: Weak dairy prices prompt pullback in forecasts for Fonterra payout

Thu, 02 Jul 2015

July 3 (BusinessDesk) - Weak dairy prices have prompted analysts to pull back their expectations for Fonterra Cooperative Group’s payout to farmers this season, with most forecasts now sitting below the dairy exporter’s. Average prices dropped 5.9 percent to a six-year low in this week's GlobalDairyTrade auction, paced by a 10.8 percent decline in whole milk powder, the nation’s key export commodity. Continued weakness in dairy prices is being driven by increased supply from New Zealand, Europe and the US amid lacklustre demand in China and...

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