The high value of the New Zealand dollar has cost Fonterra's
farmer-shareholders about $1 billion in lost revenue,
Federated Farmers dairy spokesman Willy Leferink says.
Dairy co-operative Fonterra yesterday reported an improved
profit for the year ended June but a reduced payout for
farmers, with warnings already that next season's payout will
be even lower.
Dairy giants are coming under increasing pressure to reveal
how much of a controversial "snot-like" byproduct they put in
Fonterra has gained Commerce Commission clearance to buy the
Studholme milk processing plant near Waimate, which has been
in receivership for almost four months.
The Commerce Commission said it had cleared Fonterra to
acquire the dairy processing assets of New Zealand Dairies,
which is in receivership.
The lowering last week of the forecast payment Fonterra will
make to farmers for milk this season has much wider
repercussions than just the bank balances of the country's
14,000 dairy farmers.
Dairy farmers have been again urged to "pull the belt buckle
in" after Fonterra sliced 30c from its previous forecast
range for the 2012-13 season to $5.65-$5.75.
Fonterra said it had downwardly revised its forecast payout
to farmers for the 2012-13 season due to ongoing strength of
the New Zealand dollar.
FOonterra has welcomed the Commerce Commission's final report
on a "dry run" review of how the dairy giant sets its farm
gate milk price.
Fonterra has notched up a record end-of-season quarter with
620,000 metric tonnes of dairy products exported - up 36% on
the same period last year.
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