World dairy prices probably at peak
NEW ZEALAND - Fonterra's chairman believes world dairy prices have probably reached their peak.The increased payout equates to an extra $20,000 for the average dairy farmer.
Fonterra has already indicated next season's payout would be around $5/kg if current exchange rates hold.
However, Fonterra chairman Henry van der Heyden says the picture beyond 2008 will probably be different. He warns that continuing high dairy commodity prices will reduce the profit from Fonterra's value added business, which will contribute 51c of this season's $4.35 payout.
Fonterra will announce its opening forecast for the 2007/08 payout later this month.
Source: Radio New Zealand