Fonterra revises forecast down

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.

The revised forecast comprises a lower Fonterra farmgate milk price of $5.25 per kg of milksolids, down from a previous forecast of $5.50, and a lower forecast net profit after tax range of 40-50 cents, down from 45-55 cents per share.

Fonterra announced a revised payout forecast range for 2012-13 of $5.65 - $5.75 before retentions for a fully shared up farmer, 30 cents down on the previous forecast range.

Fonterra chairman Sir Henry van der Heyden said most of the downward pressure on the farmgate milk price forecast was due to the continuing strength of the New Zealand dollar.

"We've actually seen improving prices in recent GlobalDairyTrade (GDT) trading events, but the strength of the Kiwi dollar is eroding any gains,"van der Heyden said in a statement.


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