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

 

Efficiency Gains Improve Payout Forecast To $4


Efficiency Gains Improve Payout Forecast To $4

Fonterra Co-operative Group has increased its forecast payout for the 05/06 season to $4 per kilogram of milksolids - the 15 cent improvement primarily due to cost and productivity gains, not higher commodity prices.

“Shareholders will welcome the increase, and while some minor gains in forecast product mix and exchange rates have contributed, they need to be aware that our improved forecast is largely the result of an ongoing programme of cost controls and efficiencies being undertaken throughout the season,” said Chairman Henry van der Heyden.

“We are already starting to realise some of the benefits of the business restructuring that has been carried out over the past year. The management team has continually been driving to reduce costs and improve productivity right across the business, and since we first signalled the prospect of a lower payout this year there has been a real push to bring forward some of the programmes to capture the gains this year.”

Mr van der Heyden said market prices were currently stable and Fonterra expects this situation to continue for the full 2005/06 year.

“It’s very much steady as she goes this season. Demand and pricing are both stable and we still feel that the pricing outlook will remain settled this season.”

Mr van der Heyden said the 05/06 season had begun well after a mild winter and warm spring. However, some southern regions are already experiencing dry conditions and the introduction of water restrictions.

“It’s important to remember that we are at the point in the year when less than 20 percent of milk is in the door and it’s far too early to be speculating on production over the full year.”

- ENDS -

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

ScoopPro: Helping The Education Sector Get More Out Of Scoop

The ScoopPro professional license includes a suite of useful information tools for professional users of Scoop including some specifically for those in the education sector to make your Scoop experience better. More>>

Big Tax Bill Due: Destiny Church Charities Deregistered

The independent Charities Registration Board has decided to remove Destiny International Trust and Te Hahi o Nga Matamua Holdings Limited from the Charities Register on 20 December 2017 because of the charities’ persistent failure to meet their annual return obligations. More>>

57 Million Users' Data: Uber Breach "Utterly Preventatable"

Cybersecurity leader Centrify says the Uber data breach of 57 million customer and driver records - which the ride-hailing company hid for more than a year - was “utterly preventable”. More>>

Scoop 3.0: How You Can Help Scoop’s Evolution

We have big plans for 2018 as we look to expand our public interest journalism coverage, upgrade our publishing infrastructure and offer even more valuable business tools to commercial users of Scoop. More>>

Having A Cow? Dairy Product Prices Slide For Fourth Straight Auction

Dairy product prices fell at the Global Dairy Trade auction, retreating for the fourth straight auction amid signs of increased production... Whole milk powder fell 2.7 percent to US$2,778 a tonne. More>>

ALSO:

Statistics: Butter At Record $5.67/Block; High Vegetable Prices

Rising dairy prices have pushed food prices up 2.7 percent in the year to October 2017, Stats NZ said today. This followed a 3.0 percent increase in the year to September 2017. More>>

ALSO:

Science: New Research Finds Herbicides Cause Antibiotic Resistance

New University of Canterbury research confirms that the active ingredients of the commonly used herbicides, RoundUp, Kamba and 2,4-D (glyphosate, dicamba and 2,4-D, respectively), each alone cause antibiotic resistance at concentrations well below label application rates. More>>

ALSO:

 
 
 
 
 
 
 
 
  • Bill Bennett on Tech