FCG
26/02/2015 08:35
FORECAST
PRICE SENSITIVE
REL: 0835 HRS Fonterra Co-operative Group Limited
FORECAST: FCG: Fonterra maintains 2014/15 forecast Farmgate Milk Price
Thursday 26 February 2015
FONTERRA MAINTAINS CURRENT 2014/15 FORECAST FARMGATE MILK PRICE
Fonterra Co-operative Group Limited today maintained its current forecast
Farmgate Milk Price for the 2014/15 season at $4.70 per kgMS. Along with the
previously announced estimated dividend range, this amounts to a forecast
Cash Payout of $4.95 - $5.05 for the current season.
Chairman John Wilson said that although dairy commodity prices had gone up,
the increase was not sufficient to raise the forecast Farmgate Milk Price at
this time.
"Since December, GDT prices for Whole Milk Powder have increased 45 per cent
and Skim Milk Powder prices have increased 13 per cent," Mr Wilson said.
"There continues to be significant volatility in international commodity
prices. New Zealand volumes are down, with continued uncertainty in milk
production due to climatic conditions in New Zealand with droughts in
Canterbury, Marlborough, Central Otago and North Otago.
"Today's forecast reflects the Board and management's best estimates at this
time. We are advising farmers to continue to be cautious with budgeting and
we will update them as the season progresses."
Chief Executive Theo Spierings said Fonterra was sticking to its strategy,
with confidence in the long-term fundamentals of dairy demand.
"We will provide a full business update when we report our Interim Result on
25 March," Mr Spierings said.
Fonterra is required to consider its forecast Farmgate Milk Price every
quarter as a condition of the Dairy Industry Restructuring Act (DIRA).
- ENDS -
Note: currency is New Zealand dollars unless otherwise stated.
For further information contact:
Anika Forsman
Fonterra Communications
Phone: 021 565 176
24-hour media line
Phone: +64 21 507 072
End CA:00261156 For:FCG Type:FORECAST Time:2015-02-26 08:35:37
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