Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Dairy Farmers Pleased With Forecast, Urge Caution

7 December 2004
PR 221/04

Dairy Farmers Pleased With Forecast, Urge Caution

Dairy farmers are encouraged by Fonterra Co-operative Group bumping up its payout forecast in the 2004/5 season, said Kevin Wooding, Chairman of Dairy Farmers of New Zealand (DFNZ).

His comments follow Fonterra today raising its forecast payout to $4.30 a kilogram of milk solids in the year ending May 2005, from the previously forecast $4.05. The co-op also increased its estimated fair value share price.

"We have consistently said that the $4.05 forecast in early October was a bit on the low side, given the ongoing strength of commodity prices. Dairy farmers will be pleased that Fonterra has updated this conservative forecast to a level that is more reflective of anticipated returns in the 2004/5 season," Mr Wooding said.

"Assuming the forecast is accurate, the higher payout will help farmers who are struggling to contain their business expenditure. Higher credit costs, local government rates demands, fuel and fertiliser prices have been significantly adding to the expense of running dairy farms."

Though welcoming the higher forecast, Mr Wooding cautioned dairy farmers that payouts above $4 might not be sustainable next season.

"The weaker U.S. dollar is obviously putting a lot of pressure on Fonterra's New Zealand dollar returns. And there is a risk that the favourable factors holding up dairy commodity prices might take a turn for the worse.

"I would encourage farmers not to grow over confident or sanguine about the future. They should continue their prudent approach so they can weather any possible downturn in future."

DFNZ is the dairy industry group of Federated Farmers of New Zealand (Inc).

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

ALSO:

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news