Primary Sector

Frothy Fonterra milk prices start settling

Rebecca Howard
Mon, 09 May 2022

Frothy Fonterra milk prices start settling

The majority of the co-op's milk has already been contracted for the season. (Image: Getty)

Rebecca Howard
Mon, 09 May 2022

Fonterra lowered the amount it expects to pay its farmer shareholders due to lockdowns in China, the economic crisis in Sri Lanka and the Russia-Ukraine conflict.The dairy giant now expects to pay its farmer shareholders between $9.10 and $9.50 per kilogram of milk solids versus its prior forecast of $9.30-$9.90/kgMS.This reduces the midpoint of the range – which farmers are paid off – to $9.30/kgMS from $9.60/kgMS.Still a recordWhile it remains a record, it will reduce the payout by about $500 million to just under $14 billion.Font...

Unlock all stories
free for 10 days

Trustworthy, balanced journalism every day from our growing team of New Zealand business reporters and commentators, plus more in our weekend magazine section, The Life.

Instant News Alerts based on keywords you choose or journalists you follow
Our Daily Digest of all stories at 6am, midday or 6pm
Comprehensive business and markets coverage
News via email, web and Apple/Android apps

Try for 10 days without paying and if you’re not convinced cancel with just two clicks.

Find out more

Subscribe now

Name

E-Mail Address

Password

Confirm Password

We had trouble validating your card. It's possible your card provider is preventing us from charging the card. Please contact your card provider or customer support.

Cardholder's Name

Card

You will be charged in 10 days unless you cancel beforehand. We will remind you three times before charging you.
All subscriptions auto renew but are easy to cancel.

I Accept The Terms Of Service {{ registerForm.errors.get('terms') }}

Tax: {{ taxAmount(selectedPlan) | currency }}

Total Price Including Tax: {{ priceWithTax(selectedPlan) | currency }} {{ selectedPlan.type == 'user' && spark.chargesUsersPerSeat ? '/ '+ spark.seatName : '' }} {{ selectedPlan.type == 'user' && spark.chargesUsersPerTeam ? '/ '+ __('teams.team') : '' }} / {{ __(selectedPlan.interval) | capitalize }}

Or Subscribe with Google

Not convinced yet?

Subscribe to our Daily News Update free newsletter.

Markets market close

F&P Healthcare drags NZX 50 lower

Dan Brunskill | Wed, 25 May 2022

Markets were also surprised by RBNZ's plans to keep hiking the official cash rate until it hit 4%.

Property

Homeowners to feel pain next year when home rates hit 6%

Brent Melville | Wed, 25 May 2022

There's no need for leveraged homeowners to panic as interest rates ratchet up, but stress could start being felt downstream as more rate hikes seem on the cards.

Economy

Reserve Bank will hike but not as much as it says

Rebecca Howard | Wed, 25 May 2022

The Reserve Bank of NZ now expects the official cash rate to peak at 3.9% in June 2023, up from its February view that it would peak at 3.4% in September 2024.

Partner content

Small business lessons for attracting and retaining staff

Employers battling through the ‘Great Resignation’ are now faced with the ‘Great Brain Drain’.

Partner content

People leaders are key to wellbeing but still need help

One in three people say they have experienced an issue with an unsupportive manager

Frothy Fonterra milk prices start settling

Subscribe now

Or Subscribe with Google

Not convinced yet?

Your company has a subscription

Team