Fonterra pours a payout surprise
NEW ZEALAND - Less than a month after hosing down expectations of a big payout lift this season due to the dollar's strength, Fonterra has unveiled an improved forecast that will inject more than $120 million into the rural economy.Skim milk powder prices, for example, were at an all-time high of US$3125 ($4465) a tonne yesterday, said information provider Agridata. Prices have been pushed up by factors such as the Australian drought and production shortages in the US.
Based on figures from last season, each 1c/kg lift is worth more than $12 million nationally or more than $1000 a farmer. That means 10c/kg is worth more than $120 million nationally or more than $10,000 a farmer on average.
Delighted Waikato dairy farmer Peter Buckley, president of the local branch of Federated Farmers, said the rise was great news.
"Farmers out there will be really looking forward to some extra money."
He had produced 4 tonnes more this season than the same time last year, so the improved payout would be made on increased production. He expected a record year overall for Waikato dairy farmers.
The New Zealand Herald