FCG
27/08/2014 12:57
FORECAST
REL: 1257 HRS Fonterra Co-operative Group Limited
FORECAST: FCG: Fonterra keeps Farmgate Milk Price at $6 for 2014/15 season
FONTERRA MAINTAINS FORECAST FARMGATE MILK PRICE FOR 2014/15 SEASON
Fonterra Co-operative Group Limited today maintained its forecast Farmgate
Milk Price for the 2014/15 season at $6.00 per kgMS.
Along with a previously announced estimated dividend range of 20-25 cents per
share, the forecast Cash Payout for the season is $6.20-$6.25.
Chairman John Wilson said the decision to maintain the forecast Farmgate Milk
Price reflected the longer term outlook for international prices for dairy.
"Current market views supported by our own forecasting indicate commodity
prices improving later this year or in early 2015, with global demand for
dairy continuing to grow year on year.
"While the long-term market fundamentals remain sound, we need to recognise
that the current market conditions are difficult and there remains further
downside risk.
"There is still volatility. This reflects challenges with supply and demand
following a good dairy season globally. Given these factors, the forecast is
our best judgement at this time.
"It is early in the season, and it is important that our farmers continue
exercising caution with their farming business budgets. The reality is, we
expect to see ongoing volatility, and we will keep our farmers informed as we
move forward. If market conditions change our view, we will update them.
"We will be providing an update on business performance when we announce our
Annual Result on 24 September 2014," said Mr Wilson.
Fonterra is required to consider its Farmgate Milk Price every quarter as a
condition of the Dairy Industry Restructuring Act (DIRA).
- ENDS -
For further information contact:
Anika Forsman
Phone: +64 21 565 176
Fonterra Communications
Phone: +64 21 507 072
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
more than 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.
End CA:00254479 For:FCG Type:FORECAST Time:2014-08-27 12:57:36
