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


Fonterra Lifts Forecast Payout

For Immediate Release
16 February 2005

Fonterra Lifts Forecast Payout

Fonterra Co-operative Group has announced a 20 cent increase in forecast payout for 2004/05 to $4.50 per kg of milk solids.

Chairman Henry van der Heyden said the increase reflects continued strong market demand supporting record high commodity prices. "We've now contracted with our customers a much higher proportion of our sales for this season, compared to when we last revised forecast payout in December. We're more confident now about our full-season earnings - hence this revision."

Mr van der Heyden still expects payout for 2005/06 to be lower than 2004/05.

"We've been cautioning shareholders for some time to expect a lower payout for next season. Our reasons for caution haven't changed.

"Commodity prices are at record levels, but they can't remain there indefinitely. Also, despite our foreign exchange hedging policy, our hedged conversion rate against the US dollar will be lower, which will hit our NZ-dollar earnings harder than this season."

The higher advance rate will take effect from March 2005.

Month Payout Forecast Advance Rate
June 04 $3.85 kg/MS $2.70 July 04 - October 04
$2.80 Nov 04 - February 05
October 04 $4.05 kg/MS $2.90 Nov 04 - February 05
December 04 $4.30 kg/MS $3.00 January 05 - February 05
February 05 $4.50 kg/MS $3.00 January 05 - February 05
$3.35 March 05
$3.55 April 05

- 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>>


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>>


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>>


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>>


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>>


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>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news