Two good news stories from Fonterra this week – this season’s forecast payout went up 55 cents on Tuesday and yesterday the co-operative announced the final payout for last season of $5.20.
This will do more for moral than anything else.
It is unlikely to lead to a spending spree because many dairy farms were budgeting for losses this year but the increased payout will allow more of them to break-even now.
It won’t lead to a return of the white gold rush of a couple of years ago, but it will take some pressure off seasonal lending and there will be a flow on effect through rural communities and the wider economy.
Homepaddock 