10 June 2004

Shareholders’ Council Comment On Forecast Payout

Fonterra’s Shareholders’ Council welcomed today’s announcement of a lift in the forecast payout for the 2003/04 season.

The Co-operative increased the forecast payout for the 2003/04 season to $4.23 per kg/ms, eight cents higher than the previous forecast. The company has also raised its forecast payout for the 2004/05 season from $3.50 per kg/ms to $3.85 per kg/ms.

Council Acting Chair Blue Read said: “This announcement will be welcomed by Fonterra farmers because an increase in payout will bring immediate on farm benefits.

“The increase in the forecast payout for the 2004/05 season is also encouraging. This pricing signal will help Fonterra farmers plan ahead and should give them the confidence to make investment decisions regarding their businesses.”

ENDS