Global dairy giant Fonterra Cooperative Dairies Ltd today posted a profit of $293 million for the half year to January 31, and confirmed its forecast for a record payout to farmers of about $11 billion.
"Strong international dairy markets mean 2010/11 is shaping up as one of Fonterra's best years ever in terms of returns to its farmer shareholders," the company said.
Fonterra confirmed its current forecast payout range for the 2011 season of $7.90-$8.00/kg milksolids (before retentions) to farmers, unchanged from the levels announced in late February.
Its 10,500 farmers are expected to each receive between $7.75/kg and $7.80/kg in cash from their milk payment, plus the cooperative's dividend.
"This forecast range means this year's payout may surpass Fonterra's previous record in 2008 of $7.90 (before retentions)," the company said. That season, farmers received $7.66/kg in cash.
The 2011 forecast is based on a milk price of $7.50/kg and a distributable profit (surplus) range of $550-$690 million, equivalent to 40c-50c a share, from which Fonterra plans to pay a dividend of 25c-30c a share.
Fonterra's net profit after tax for the first six months of the season, $293m, was equivalent to 21c a share. Because this was the first time Fonterra has reported a result for the half year, there was no comparison with the preceding year.
