Farmers Disappointed with Forecast Dividend

Farmers Disappointed with Forecast Dividend

Fonterra Shareholders’ Council Chairman, Ian Brown said Farmers will be disappointed with today’s announced interim dividend of 10 cents per share and forecast range of 20-30 cents per share for the 2014/15 season especially given the current Milk Price.

Mr Brown: “That Fonterra has maintained the 2014/15 forecast Farmgate Milk Price at $4.70 per kg/MS is a positive given the volatility experienced throughout the season to date however Shareholders had an expectation that their Co-operative would have delivered a higher dividend.

“Shareholders rightfully want to see the strategy provide a return on their investment especially given the low Milk Price environment Farmers are currently experiencing.

“A sound strategy is key to adding value long term and it is important that Shareholders understand the factors that influence this.

“Farmers should take the time to ask questions of their Board and Management at the upcoming Farmer meetings.

“In the interim I continue to encourage Farmers to be prudent in their financial planning and to ensure they place their businesses in the best possible shape for next season.”

ENDS

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