Fonterra: Dairy giant on the right track
27 September 2017
SIMONE SMITH, The Weekly Times
September 27, 2017 12:00am
FONTERRA Australia says it is “comfortable” with its current farmgate milk price, having factored in Australian dollar values.
The dairy giant lifted its farmgate milk price to $5.50 a kilogram of milk solids in July. Australian managing director René Dedoncker said this took into account an Australian dollar at US79-80c.
Mr Dedoncker said it was possible the price could rise. Fonterra has a forecast of up to $5.80/kg of MS without including the 40c/kg of MS extra it is paying farmers this season.
Fonterra’s annual results on Monday showed a 12 per cent revenue increase to $NZ19.2 billion ($17.6 billion), but an 11 per cent drop in net profit after tax of $NZ745 million ($682 million) due to lower margins.