Dairy farmers are being warned to be cautious about spending
after Fonterra cut its forecast payout range for the current
season by 30c - representing an estimated $500 million drop
in revenue for the New Zealand economy.
Fonterra is not investigating options to build a
milk-processing plant in Central Otago, the company says,
despite indications from Central Otago Mayor Tony Lepper that
could be the case.
Fonterra will hold a special meeting of shareholders on June
25 to give them a final vote on its controversial Trading
Among Farmers scheme and "unify the co-operative".
Fonterra is investing in a blending and packing plant in
Indonesia to help support the country's increasing demand for
dairy products, forecast to grow by about 50% in the next
eight years.
A suggestion demutualisation of dairy giant Fonterra could
result from changes to the Dairy Industry Restructuring
Amendment Bill has been slammed by Primary Industries
Minister David Carter.
Record volumes of milk have helped diary giant Fonterra
increase its half-year net profit by 18% to $346 million -
raising the prospect of hitting $20 billion in revenue this
year.
Fonterra has no plans to build a new milk-processing plant in
Otago or Southland to meet increasing milk supply, with its
$500 million Darfield plant still to become fully
operational.
Fonterra's "trading among farmers" plan is one step closer to
its proposed November launch with the introduction of the
Dairy Industry Restructuring Amendment Bill.
Fonterra's announcement last week of a 15c reduction in its
payout forecast for the 2011-12 season might not be the only
revision for the season, Federated Farmers dairy chairman
Willy Leferink says.
