Fonterra Slashes Milk Price, Warns of More Cuts
AUSTRALIA - Fonterra Australia has slashed its milk price to farmers and warned of more severe cuts are to come.
30 December 2008
1 minute read
Fonterra managing director, Bruce Donnison, sent letters to 1500 of its suppliers last week stating the company had withdrawn its November step-up payment of 7 cents/kg butterfat and 17 cents/kg protein, according to Weekly Times Now.
The letter states, 'Since writing to you in early November, we have seen a further deterioration in trading conditions.
'Commodity prices continue to decline and this has been exacerbated in recent weeks by a rapidly deteriorating financial situation around the world; a deterioration which has far exceeded even our most pessimistic expectations.'
In the letter, Mr Donnison warned, 'Our forward expectations for the remainder of the season remain below any previous outlook'.
