Payout boost buoys dairy farmers
Fonterra has announced a boost in its forecast payout for the season to $5.10/kg of milksolids (MS). The lift from $4.55 is made up of a milk price increase of 60c to $4.60/kg and a drop in value return by 5c to 50c/kg.
Chairman Sir Henry van der Heyden said this reflects a sustained improvement in commodity returns and a more positive outlook in international dairy markets.
"This will give our farmers a bit of relief and some extra flexibility to get the best out of their farms this year," he said.
The high New Zealand dollar, which has been trading around US70c, remains a concern but had been fully factored in to the revised 2009/10 forecast.
Fonterra also announced a final payout for the past season of $5.20/kg MS with 1c/kg retentions.
Federated Farmers Dairy chairman Lachlan McKenzie said the lift in this season's payout was good news for farmers, but they should reflect on what they could be receiving if the dollar was at a lower level.
|
PRINTABLE
VERSION
TOP
