Fonterra Revises Payout and Warns of Hard Times
NEW ZEALAND - Fonterra Co-operative Group has announced a revised forecast payout for the 2008/09 season of $6.00 per kilogram of milksolids.
21 November 2008
1 minute read
This is a 60 cent reduction in the previous forecast in September and it follows a 24 percent drop in international dairy commodity prices in the last eight weeks.
Fonterra Chairman, Henry van der Heyden said declining prices across all commodities, including dairy, had been exacerbated in recent weeks by the global financial crisis.
“There is a great deal of uncertainty around the world, industry and trade activity is slowing down and all the forecasts are pointing to a global recession. We have seen a real tightening in consumer spending and dairy is not immune to this rapid deterioration in the global economy.”
“We have kept conditions under close review and brought forward our forecast revision so farmers know exactly where they stand as they work through their budgets for next year. The message is for farmers to be cautious in their planning.”
Fonterra CEO Andrew Ferrier said, given current conditions, demand was unlikely to recover by mid-2009 as initially expected.
TheCattleSite News Desk
