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


Efficiency Gains Improve Payout Forecast To $4

Efficiency Gains Improve Payout Forecast To $4

Fonterra Co-operative Group has increased its forecast payout for the 05/06 season to $4 per kilogram of milksolids - the 15 cent improvement primarily due to cost and productivity gains, not higher commodity prices.

“Shareholders will welcome the increase, and while some minor gains in forecast product mix and exchange rates have contributed, they need to be aware that our improved forecast is largely the result of an ongoing programme of cost controls and efficiencies being undertaken throughout the season,” said Chairman Henry van der Heyden.

“We are already starting to realise some of the benefits of the business restructuring that has been carried out over the past year. The management team has continually been driving to reduce costs and improve productivity right across the business, and since we first signalled the prospect of a lower payout this year there has been a real push to bring forward some of the programmes to capture the gains this year.”

Mr van der Heyden said market prices were currently stable and Fonterra expects this situation to continue for the full 2005/06 year.

“It’s very much steady as she goes this season. Demand and pricing are both stable and we still feel that the pricing outlook will remain settled this season.”

Mr van der Heyden said the 05/06 season had begun well after a mild winter and warm spring. However, some southern regions are already experiencing dry conditions and the introduction of water restrictions.

“It’s important to remember that we are at the point in the year when less than 20 percent of milk is in the door and it’s far too early to be speculating on production over the full year.”

- ENDS -

© Scoop Media

Business Headlines | Sci-Tech Headlines


The Download Weekly: Vodafone FibreX back in court

Vodafone and the Commerce Commission head back to court over FibreX in a week the TCF issues broadband marketing codes that should avoid similar problems in the future... More>>

NIWA: Tonga Eruption Discoveries Defy Expectations
New findings from the record-breaking Tongan volcanic eruption are “surprising and unexpected”, say scientists from New Zealand’s National Institute for Water and Atmospheric Research (NIWA)... More>>

Commerce Commission: Appeals Record $2.25m Fine In Vodafone FibreX Case

The Commerce Commission has filed an appeal in the High Court against a record $2.25 million fine imposed on Vodafone NZ Limited (Vodafone) for its offending under the Fair Trading Act during its FibreX advertising campaign. While the sentence imposed in the Auckland District Court on April 14 was the largest-ever fine under the Fair Trading Act, the Commission will argue that it is manifestly inadequate... More>>

Stats: Quiet Start For Retail In 2022
The volume of retail sales was relatively unchanged in the March 2022 quarter, following a strong increase in the December 2021 quarter, Stats NZ said today... More>>

Finder: RBNZ Survey: 64% Of Experts Say Rising Inflation Will Push More Kiwis Into Debt

Soaring inflation and cost of living pressures will see many households pushed to the financial limit, according to experts... More>>

Barfoot & Thompson: Rents Up By Around 3% In Most Areas

The average weekly rent paid for homes in most areas of Auckland has risen by around 3 percent year-on-year. The figures for end March from more than 16,000 properties... More>>