Fonterra forecast big for 2010/2011
Fonterra has set its first payout forecast for the 2010/11 season, lifting its outlook for the milk price by around 50 cents per kilo to around NZ$6.60/kg.
Once dividends from profits are added, Fonterra could produce a payout of around NZ$7/kg. This would be the second highest payout in Fonterra’s history after the record NZ$7.62/kg paid out in 2007/08. Fonterra chairman Henry van der Heyden said it was possible the final payout could be over NZ$8/kg if the exchange rate and commodity prices stayed at their current levels. This would add up to NZ$2 billion to the economy from the NZ$2009/10 season, assuming the drought of the last few months does not hurt output too much reports interest.co.
Each extra dollar of payout adds around NZ$1.2 billion to the New Zealand economy and the forecast of a higher payout will boost the outlook for the economy overall and provincial economies such as Southland, Canterbury, Taranaki, Waikato, Manawatu, Bay of Plenty and Northland.
Fonterra also held its value of its shares at NZ$4.52 per share. Fonterra requires its farmer/shareholders to hold one share for each kilogram of milk solids it produces each season.
Tags: Fonterra, Henry van der Heyden, Milk forecast 2010/2011
