The strong New Zealand dollar has forced Fonterra to hold its forecast payout for the 2010/11 season at $6.60 per kilogram of milksolids as the high kiwi counters the impact of firm commodity prices.Fonterra chairman Sir Henry van der Heyden said dairy ma
The strong New Zealand dollar has forced Fonterra to hold its forecast payout for the 2010/11 season at $6.60 per kilogram of milksolids as the high kiwi counters the impact of firm commodity prices.
Fonterra chairman Sir Henry van der Heyden said dairy market prices were holding up better than initially expected, leading the board to contemplate an increase in the forecast milk price.
However, the recent strength of the New Zealand dollar against the US dollar meant it was not prudent to increase the forecast at this time.
While the forecast was unchanged, the board has increased the advance rate schedule, the proportion of the milk price that is paid in advance to farmers during the season via monthly milk cheques.
The advance for the next payment in November is now $4.60 per kg of milk solids, up from $4.30 per kg of milk solids in the previous schedule.
The forecast distributable profit range for the 2011 financial year is also unchanged at 40 to 50 cents per share, as is the target dividend range of 25 to 35 cents per share.
