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

 

Shareholders' Council welcomes payout announcement

30 May 2008


Fonterra Shareholders' Council welcomes payout announcement

The Fonterra Shareholders' Council welcomed Fonterra's announcement today of an increase in the 2007/08 forecast payout to $7.90 per kilogram of milksolids and a record opening forecast of $7.00 for the 2008/09 season.

Shareholders' Council Chairman Blue Read said: "The lift in this season's forecast payout is good news for Fonterra farmers and a forecast of $7.00 is a great start for the year ahead. It hasn't been the easiest season for many farmers with rising costs and widespread drought so this will have a positive impact on our farming businesses."

Mr Read said the Board's decision to consider retaining some earnings this season to mitigate the impact of redemptions was sensible.

Some fall in the Fair Value Share was not unexpected and would bring some new challenges for the business, Mr Read said.

"Part of the change reflects what has happened in world economies since the last valuation. Fonterra is a truly global business and changes in the external environment impact the co-operative daily. We have benefited hugely from record global commodity prices and this is the other side of the coin.

"The Fair Value Share is an indication of expected performance over time. The Council has reviewed Fonterra's Three-Year Business Plan and strategy and we are confident that there is a clear and cohesive direction for the business.

"All the same, the fall in the share price reinforces the need to build long-term, sustainable value and that will require agreement on the future direction of our co-operative."


ENDS


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Water: Farming Leaders Pledge To Help Make Rivers Swimmable

In a first for the country, farming leaders have pledged to work together to help make New Zealand’s rivers swimmable for future generations. More>>

ALSO:

Unintended Consequences: Liquor Change For Grocery Stores On Tobacco Tax

Changes in the law made to enable grocery stores to continue holding liquor licences to sell alcohol despite increases in tobacco taxes will take effect on 15 September 2017. More>>

Back Again: Government Approves TPP11 Mandate

Trade Minister Todd McClay says New Zealand will be pushing for the minimal number of changes possible to the original TPP agreement, something that the remaining TPP11 countries have agreed on. More>>

ALSO:

By May 2018: Wider, Earlier Microbead Ban

The sale and manufacture of wash-off products containing plastic microbeads will be banned in New Zealand earlier than previously expected, Associate Environment Minister Scott Simpson announced today. More>>

ALSO:

Snail-ier Mail: NZ Post To Ditch FastPost

New Zealand Post customers will see a change to how they can send priority mail from 1 January 2018. The FastPost service will no longer be available from this date. More>>

ALSO:

Property Institute: English Backs Of Debt To Income Plan

Property Institute of New Zealand Chief Executive Ashley Church is applauding today’s decision, by Prime Minister Bill English, to take Debt-to-income ratios off the table as a tool available to the Reserve Bank. More>>

ALSO: