iPredict to forecast Fonterra payouts
Stocks will predict Fonterra payouts for the next five years.
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Online predictions market iPredict will this week launch stocks to provide New Zealand dairy farmers and others with the first-ever five-year forecasts of Fonterra's likely milk solids payout.
Draft stocks are currently available to enable traders to review and comment on their fine-print prior to the formal launch.
Dairy farmers and other dairy industry experts are also encouraged to comment and trade.
“Fonterra is New Zealand‟s most important company, responsible for around a quarter of our exports and around 7% of GDP,” iPredict chief executive Matt Burgess says.
“Until now, the only source of rigorous data about the company‟s future payout to farmers has been the company itself, and then usually with only a two-year horizon.
“With iPredict‟s new stocks, dairy farmers, the wider industry, economists, banks, the government and everyone with an interest in New Zealand‟s medium-term economic prospects, will be able to obtain free snapshot information on how the company is likely to perform, in terms of payout, for the next five years.”
Mr Burgess says the stocks will be based on Fonterra‟s final payout, per kilogram of milk solids, to a 100% share-backed farmer (before retentions), for the five financial years from and including 2010/11.
“Currently, Fonterra is forecasting a payout in the range of $8.00 to $8.10 for 2010/11 and $7.15 to $7.25 for 2011/12. The iPredict stocks will provide farmers and everyone else with an independent assessment of the forecast payout.”
Fonterra announced yesterday it would be cutting its number of organic suppliers in half.
Niko Kloeten
Tue, 23 Aug 2011
Tue, 23 Aug 2011
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iPredict to forecast Fonterra payouts
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