Weak dairy prices raise doubts about Fonterra's forecast payout

Wed, 17 Feb 2016

By Tina Morrison Feb. 17 (BusinessDesk) - Continued weakness in dairy prices is stoking speculation over Fonterra Cooperative Group's ability to meet its current farmgate milk price, which it revised lower as recently as last month. Prices fell 2.8 percent at the GlobalDairyTrade auction overnight, the fourth straight drop this year. The average price for New Zealand's key product, whole milk powder, sank 3.7 percent, taking its decline this year to 18 percent. Fonterra, New Zealand's largest dairy company, last month reduced its farmg...

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