Fonterra's 60c drop in farmgate milk price payout in line with weak expectations

Tue, 09 Dec 2014

By Fiona Rotherham Dec. 10 (BusinessDesk) - Fonterra Cooperative Group has slashed its forecast farmgate milk price for the 2014/2015 season by 60 cents per kilogram of milk solids to $4.70/kgMS, but has left the dividend range unchanged at 25-35 cents per share. The lower payout would translate to a $1.1 billion revenue drop for the dairy industry and $6.6 billion less than last season, according to Bank of New Zealand senior economist Doug Steel, while Westpac Banking Corp estimates the drop from $8.40 last season to $4.70/kgMS forecast...

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