Christmas could come early for Fonterra farmer shareholders
with predictions that the forecast payout could even top a
Economists have been predicting the dairy giant will this
week lift its milk price by 20c-40c, from $8.30/kg ms to
With a estimated 32c-per-share dividend on top of that, it
would give a forecast cash payout of $8.82-$9.02.
An announcement on the latest forecast was likely to be made
today. Speaking at the co-operative's annual meeting in
Edendale late last month, Fonterra chairman John Wilson said
the 2014 season seemed likely to deliver a record high
Yesterday, Craigs Investment Partners broker Peter McIntyre
said the expectation was that the forecast would go very
close to $9.
With a 30c lift from the current forecast milk price meaning
an extra $497.3 million for the country's economy, that was
''really positive'' and ''massive'' for Otago and Southland,
with their strong dairying profile.
Such an increase would be welcomed by farmers trying to get
their debt profile down. It would also put further pressure
on land prices, he said.
Forsyth Barr broker Andrew Rooney said global dairy demand
looked ''hard to derail'' and might in fact be understated.
Dairy had a direct contribution to the New Zealand economy
but the flow-on effects were significantly larger.
Demand for proteins continued to be very strong from China
while the proposed changes in the one-child policy provided
an additional positive, he said.
American company Land O' Lakes will join the GlobalDairyTrade
platform in March, bringing the number of sellers to seven.
The company, which had annual sales of more than $14 billion
in 2012 and customers in more than 60 countries, will
initially offer skim milk powder. Butter will be offered
later in the year.
GlobalDairyTrade director Paul Grave said the company was
''honoured'' a company with Land O'Lakes' stature was
participating in GDT.
It demonstrated GDT's expanding role as a key platform for
international trade in a broad range of dairy commodities, he