Fonterra milk payoutsThis article was originally published in Foodnews
FONTERRA has confirmed a NZ$5.20 per kg (US$.374/kg) milk solids payout for its farmers in the 2008-09 season. Its directors have held back a further one cent/kg. The payout was made up of NZ$4.72/kg milk price and an added-value dividend of 48 cents/kg. Fonterra said its revenue was NZ$16.035 billion for the 12 months to 31 July, down 17.8% on NZ$19.512 billion for the 14 months to July 2008. Its profit was NZ$422 million, up 73%. Fonterra has also lifted the forecast payout for the current 2009-10 season by 55 cents to NZ$5.10/kg. A strong second-half sales performance meant Fonterra recovered well from a slow first half, with New Zealand-sourced sales volumes for the year growing by 5%. As a result, total inventories were reduced to NZ$2.7 billion by the end of the year, NZ$2.4 billion lower than at 31 January, and NZ$600 million lower than at 31 July 2008.