Fonterra's payout may be at risk after global dairy prices undershoot

Wed, 04 Oct 2017

By Rebecca Howard Oct. 4 (BusinessDesk) - Dairy prices undershot expectations in the overnight auction and some economists say it points to weaker demand and stronger supply, threatening Fonterra Cooperative Group's forecast payout. The NZX Dairy Derivatives market pointed to around a 5 percent lift but instead the GDT price index - which covers a variety of products and contract periods - fell 2.4 percent from the previous auction two weeks ago to US$3,223. "The fall was a surprise and must be telling us something about demand that...

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