Fonterra Comments On International Dairy Prices
Fonterra confirmed today that a strong New Zealand dollar and further drop in international dairy prices meant that the Board would be reviewing the current 2010/11 payout forecast.
Following the globalevent overnight, the gDT-TWI index was down 8.3%. This followed a 13.7% decline at the July event.
“Encouragingly, Whole Milk Powder had strengthened slightly for the February to April period,” said CEO Andrew Ferrier. “But, the New Zealand dollar was at very high levels.”
Mr Ferrier said that as part of its normal planning process Fonterra is reviewing the current forecast in light of these developments.
“We always said there would be a lot of volatility in the market and we are seeing it. It’s important in this environment to let our farmer-shareholders know as soon as possible if we think there could be any impact on payout.”
About Fonterra
Fonterra is a global leader in dairy nutrition – the preferred supplier of dairy ingredients to many of the world’s leading food companies. Fonterra is also a market leader with our own consumer dairy brands in Australia/New Zealand, Asia/Africa, Middle East and Latin America.
The farmer-owned New Zealand co-operative is the largest processor of milk in the world, producing more than two million tonnes of dairy ingredients, value added dairy ingredients, specialty ingredients and consumer products every year. Drawing on generations of dairy expertise, Fonterra is one of the largest investors in dairy based research and innovation in the world. Our 16,000 staff work across the dairy spectrum from advising farmers on sustainable farming and milk production, to ensuring we live up to exacting quality standards and delivering every day on our customer promise in more than 100 markets around the world.
