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- Release Date: 27/02/13 10:30
- Summary: FORECAST: FSF: FONTERRA CONFIRMS FARMGATE MILK PRICE
- Price Sensitive: No
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FSF
27/02/2013 08:30
FORECAST
REL: 0830 HRS Fonterra Shareholders' Fund (NS)
FORECAST: FSF: FONTERRA CONFIRMS FARMGATE MILK PRICE
Fonterra Co-operative Group Limited has confirmed its payout forecast range
for the 2012/13 season of $5.90 - $6.00 before retentions for a fully shared
up farmer, unchanged from the previous forecast range.
Fonterra is required to consider its Farmgate Milk Price every quarter as a
condition of the Dairy Industry Restructuring Act (DIRA).
The Co-operative confirmed today a forecast Farmgate Milk Price for the
2012/13 season of $5.50 per kilogram of milksolids, unchanged from the
previous forecast.
(Fonterra's forecast Earnings Per Share range remains at 40-50 cents)
Fonterra Chief Executive Theo Spierings said dry weather conditions,
particularly in the North Island, in mid-December and January had resulted in
a slowdown in milk supply growth.
"We had a strong start to the season and milk collection volumes were running
6% ahead of last season on a year-to-date basis," said Mr Spierings.
"However, the dry conditions mean we are currently forecasting total milk
collection volumes to finish approximately 1% ahead for the full season."
Global dairy prices remained relatively flat through December and January,
with the GDT-TWI increasing by 2% over this period. The index has since
gained 5% in February. Given current global conditions, our Farmgate Milk
Price forecast anticipates global dairy prices are likely to move higher in
the second half of the season.
The current Farmgate Milk Price forecast of $5.50 kgMS is based on no
substantial change to the current exchange rate for the rest of the season.
If there was a further significant strengthening of the New Zealand dollar
against the USD then this may adversely impact on the forecast Farmgate Milk
Price.
End CA:00233491 For:FSF Type:FORECAST Time:2013-02-27 08:30:44
