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

 

Dairy Farmers Expecting Higher Advance

4 October 2004

Dairy Farmers Expecting Higher Advance

Dairy farmers are hoping Fonterra Co-operative Group will increase the current season’s forecast final payout and raise its advance payout this week, says Kevin Wooding, Chairman of Dairy Farmers of New Zealand (DFNZ).

"By increasing the forecast payout, Fonterra has the opportunity to raise this season’s advance payment rate, which will help shareholders through a difficult season," Mr Wooding said.

Fonterra’s annual meeting on October 7 is expected to include mention of the co-operative's advance payment rates and the 2004/05 season forecast. The current forecast of $3.85 kg/ms was set in June

The advance payment rate refers to the amount dairy farmers are paid through the season for their milk, before the final payout is confirmed. The rate is set as a proportion of the full year forecast.

"Commodity prices continue to move positively with many at an all time high. With the exception of unfavourable exchange rate movements, there is no reason why farmers shouldn't see rising milk returns in the forthcoming season.

“Increasing the advance rate would provide a much needed confidence boost to dairy farmers who are down on production, with some struggling to pay their bills.

“Climatic conditions such as flooding in the Bay of Plenty and the Lower North Island and a difficult season in general have been a strain on many dairy farmers, so an increased advance rate would help ease this.

"Last season Fonterra succeeded in lifting payout from the forecast $3.80 at the season's start to the end result of $4.25, which was a good effort that I hope to see again this year," Mr Wooding said.

Dairy Farmers of New Zealand is an industry group of Federated Farmers of New Zealand (Inc)

ENDS


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 



Electricity Authority: Review Of Competition In The Wholesale Electricity Market Raises Questions

In March 2021 the Electricity Authority announced it would conduct a review into competition in the wholesale electricity market. The period of the review covers the sustained elevated electricity prices since an unplanned outage at the Pohokura gas facility in Spring 2018... More>>


Government: RSI ‘State Of The Nation’ Report Published
latest research, science and innovation system report card is now available, and outlines how the system is performing, Research, Science and Innovation Minister Megan Woods has announced. “The report seeks to increase transparency, act as a reliable data source and stimulate discussion... More>>




Fonterra: Increases 2021/22 Forecast Farmgate Milk Price

Fonterra Co-operative Group Limited today increased and narrowed its forecast Farmgate Milk Price range to NZD $7.90 - $8.90 per kgMS, from NZD $7.25 - $8.75 per kgMS. The midpoint of the range, which farmers are paid off, has increased to NZD $8.40 per kgMS, from NZD $8.00 per kgMS... More>>




Pamu & Westpac: Market-leading Sustainability-Linked Loan

Westpac NZ and Pāmu have signed New Zealand’s most comprehensive Sustainability-Linked Loan to date, also the largest in the agricultural sector, and the first involving a state-owned enterprise. Pāmu, also known as Landcorp, is New Zealand’s biggest farming business. It will borrow $85m from Westpac NZ over three years... More>>


Retail NZ: Some Good News In COVID Announcements, But Firm Dates Needed

Retail NZ is welcoming news that the Government is increasing financial support for businesses in light of the ongoing COVID-19 lockdown, and that retail will be able to open at all stages of the new “Covid Protection Framework... More>>

ComCom: Companies In Hot Water For Selling Unsafe Hot Water Bottles And Toys

A wholesaler and a retailer have been fined a total of $140,000 under the Fair Trading Act for selling hot water bottles and toys that did not comply with mandatory safety requirements. Paramount Merchandise Company Limited (Paramount) was fined $104,000 after pleading guilty in the Manukau District Court... More>>