Aggressive forecast Farmgate Milk Price, advance welcomed

MEDIA RELEASE

29 May 2013

Aggressive forecast Farmgate Milk Price, advance welcomed by Farmers

Fonterra Shareholders’ Council Chairman, Ian Brown, said it was encouraging for Farmers to see Fonterra take an aggressive stance in its Milk Price forecasting for next season.

The Fonterra Board of Directors today announced an opening Farmgate Milk Price forecast of $7.00 per kg/MS for the 2013/14 season, including a $5.00 advance.

Ian Brown: “This is great news for our Farmer Shareholders and reinforces the good position our Co-operative is in.

“Having a strong forecast Milk Price and advance puts Farmers in a healthier position and provides them greater flexibility in running their farms.

“It will help to relieve some of the pressure many have faced as a result of the drought, but as we operate in a volatile market I urge Farmers to be prudent in their financial planning for next season.”

The Co-op also confirmed it would be holding its current 2012/13 season forecast Payout of $6.12 for a fully shared-up Farmer comprising a Farmgate Milk Price of $5.80 per kg/MS, and a forecast dividend of 32 cents per share.

“Farmers should feel very positive about the results that have been delivered by Fonterra given the challenging season we have all faced.

“Commodity prices were low for a large part of the financial year but it is really encouraging to see the Milk Price improving and this will help Farmers going forward.”

ENDS

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