By Phil Boeyen, ShareChat Business News Editor
|
Monday 29th April 2002 |
Text too small? |
The co-op is advising its dairy farmer shareholders that the most likely final payout for the 2002/3 season is now $4.00 per kilogram of milksolids, down from $4.50 advised in February.
Chairman, John Roadley, says the change has been caused by falling commodity prices and a strengthened New Zealand dollar.
"Fonterra has been reporting negative market sentiments since the middle of last year and the events of 11 September have added to the uncertainty.
"In November, the EU began to re-introduce export subsidies and has continued to regularly increase these. The US has also disposed of a significant quantity of milkpowder with similarly increasing subsidies."
Mr Roadley says since February, market prices have continued to fall at a rate not previously experienced.
"Commodity prices are now close to their lowest levels in twenty years although a $4.00/kgms payout would still be among the highest in recent years."
Fonterra says its hedging portfolio will limit the impact of a strengthened New Zealand dollar to about 10 cents per kilo of milksolids.
The co-op says the forecast of the most likely final payout for the 2001/2 season, which ends on 31 May, continues to be NZ$5.30/kgms, less three cents for industry good activities.
No comments yet
