A sudden surge in the value of the New Zealand dollar
threatens to take the steam out of the export-led recovery,
with one bank warning Fonterra could wipe $1 a kg off its
forecast milk solids payout this season.
Economic uncertainty and the start of a new European dairy
season saw milk powder prices fall nearly 14% in Fonterra's
monthly internet auction on Tuesday night, a trend that could
continue for the next few months.
Fonterra shareholders have voted overwhelmingly in favour of
allowing share trading among farmer suppliers, effectively
moving the immediate prospective of a sharemarket float off
the co-operative's agenda.