Fonterra lifts 2012 payout forecast range
Fonterra has increased its payout forecast range for the 2012 season by 20c to $6.90-$7.00 for a fully shared up farmer.
Fonterra has increased its payout forecast range for the 2012 season by 20c to $6.90-$7.00 for a fully shared up farmer.
Fonterra chairman Sir Henry van der Heyden said the new forecast reflected a modest recovery in global dairy commodity prices over the past two months.
In late October, Fonterra cut its payout forecast for the current season by 45c per kg of milk solids with the dairy giant blaming softer commodity prices and the strong New Zealand dollar.
New Fonterra CEO Theo Spierings said today that prices had edged up in three of the last four fortnightly auctions on the online trading platform GlobalDairyTrade (GDT). He said world dairy trade growth was being led by powders (combined whole milk and skim), reflecting strong demand especially in emerging markets, including a number of ASEAN economies, as well as Brazil, Mexico and China.
The revised forecast comprises a Fonterra farmgate milk price of $6.50 per kilogram of milksolids (kgMS), up from $6.30 kgMS, and an unchanged distributable profit forecast range of 40-50 cents per share.
For the average sized dairy farm, producing around 100,000kg of milk solids today's 20c lift in the forecast payout could mean up to $20,000 more cash this coming year.
Fonterra also announced the estimated fair value share price for the next season in 2012/13 is $4.52 per share, which is the same as the current season’s price. The final share price for the 2013 season will be determined in late May 2012.
NBR staff
Tue, 13 Dec 2011
Tue, 13 Dec 2011
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Fonterra lifts 2012 payout forecast range
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