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

 

Drought takes its toll on Fonterra’s forecast


25 July 2013

Drought takes its toll on Fonterra’s forecast

Federated Farmers is not surprised Fonterra Cooperative Group has announced a decrease in its 2013 forecast earnings before interest and taxation. This is due to the impact of the drought and pressures in its Australian operations.

“I think farmers will be relieved Fonterra has reconfirmed the forecast cash payout will remain unchanged for the 2012/13 season at $6.12. However, the reality of this announcement is that everything has a flow on effect,” says Andrew Hoggard, Federated Farmers Dairy vice-chairperson.

“All those people who have looked at the increased prices on the Global Dairy Trade (GDT) platform and then decided to buy more Fonterra units on the stock exchange may not have understood how it all works. Increases in GDT prices actually mean tighter margins as the base commodities that Fonterra uses to make its own products also rise in price.

“You can see by this announcement it wasn’t a benefit to investors as the higher GDT actually means less profit.

“Farmers should not be too complacent about this announcement as Fonterra’s Forecast for 2014 is scheduled for next week.

“The drought may be over but it still has a sting in its tail.” Mr Hoggard concluded.

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Super Fund/Canada Bid v NZTA: Tow Preferred Bidders For Auckland Light Rail

The two preferred delivery partners for Auckland light rail have been chosen and a final decision on who will build this transformational infrastructure will be made early next year, Minister of Transport Phil Twyford announced. More>>

ALSO:

9.3 Percent: Gender Pay Gap Unchanged Since 2017

“While it has remained flat since 2017, the gender pay gap has been trending down since the series began in 1998, when it was 16.2 percent,” labour market statistics manager Scott Ussher said. More>>

ALSO:

Ex-KPEX: Stuff Pulls Pin On Media Companies' Joint Ad-Buying Business

A four-way automated advertising collaboration between the country's largest media companies is being wound up after one of the four - Australian-owned Stuff - pulled the pin on its involvement as part of a strategic review of its operations ... More>>

Bus-iness: Transdev To Acquire More Auckland And Wellington Operations

Transdev Australasia today announced that it has agreed terms to acquire two bus operations in Auckland and Wellington, reaching agreement with Souter Investments to purchase Howick and Eastern Buses and Mana Coach Services. More>>

ALSO: