Fonterra has increased its forecast payout by 30 cents to $6.09 a kilo of milksolids and those with shares will get a dividend on top of that.
As a consequence, Fonterra now forecasts that a 100 per cent share backed farmer will earn, on average, the equivalent of $7.30-$7.40 before retentions, comprising Milk Price (per kgMS production) plus Distributable Profit (per share held). On a cash basis, the same farmer is forecast to receive a total of $7.15-$7.25, comprising Milk Price (per kgMS) and dividend (per share) – with the balance of the profit being retained by the Co-operative.
This is very good news for farmers, especially those facing drought because reduced production will be compensated for somewhat by an increase in value for the milk they do produce.
In light of the NZIER report on dairying’s contribution to the wider economy released earlier this week it’s also very good news for the whole country.
Homepaddock 