FSF
24/09/2015 08:32
FORECAST
PRICE SENSITIVE
REL: 0832 HRS Fonterra Shareholders' Fund (NS)
FORECAST: FSF: Fonterra increases 2015/16 forecast Farmgate Milk Price
24 September 2015
FONTERRA INCREASES 2015/16 FORECAST TOTAL AVAILABLE FOR PAYOUT BY 75 CENTS
Fonterra Co-operative Group is lifting its forecast total available for
payout for the 2015/16 season to $5.00 - $5.10 kgMS due to an increase in the
forecast Farmgate Milk Price of 75 cents.
The forecast total available for payout comprises:
- Forecast Farmgate Milk Price $4.60 kgMS - up 75 cents
- Forecast earnings per share of 40 - 50 cents.
Farmer shareholders have also been able to apply to receive a loan of an
additional 50 cents per share-backed kilogram of milk solids for production
through to December, through Fonterra Co-operative Support. So far, over
7,000 applications have been received, around 70 per cent of farmer
shareholders.
Mr Wilson said the improved forecast Farmgate Milk Price reflected the lift
in global prices since July with Whole Milk Powder increasing 44 per cent and
Skim Milk Powder increasing 21 per cent over the period.
"Current global prices are unsustainable. While there are signs that supply
growth globally is easing, a lift in demand, which is needed for prices to
continue to rise, is still to come," said Mr Wilson.
Fonterra has also lowered its forecast milk production for the season.
"We are 5 per cent behind last season to date and are currently tracking 8
per cent down on last season on a weekly basis. Farmers are responding to the
tough economic conditions and with cow numbers down, less supplements being
fed and challenging weather conditions for much of the country, we now expect
production to be down by more than 5 per cent for the season," said Mr
Wilson.
Note: currency is New Zealand dollars unless otherwise stated.
For further information contact:
Simon Till
Director Capital Markets
Phone: +64 21 777 807
24-hour media line
Phone: +64 21 507 072
End CA:00270655 For:FSF Type:FORECAST Time:2015-09-24 08:32:38
