Dairy giant Fonterra says its payout to farmers this season is set to beat its 2008 record of $7.90/kg milksolids, meaning the distributable surplus in May will be equivalent to nearly $1 million for the average farmer.
Global dairy giant Fonterra Cooperative Dairies Ltd today posted a profit of $293 million for the half year to January 31, and confirmed its forecast for a record payout to farmers of about $11 billion.
Dairy commodity prices tumbled at Fonterra's overnight online auction, with the globalDairyTrade trade weighted index falling 8.2 percent, and the average winning price down to $US4443 ($NZ6064) from $US4826 a fortnight ago.
Fonterra today announced it would freeze the domestic price of milk for the rest of year, after criticism that it was becoming unaffordable for many families.
Fonterra is freezing wholesale domestic milk prices for the rest of 2011, but says the price consumers pay will ultimately be determined by retailers.
Dairy co-operative Fonterra is increasing its forecast payout range to farmers by 60c to $7.90-$8.00 for the 2010/2011 season, before retentions, the company said today.
The attention of the world's dairy markets will be focused on today's globalDairyTrade event after news cyclones, floods and bush fires have cut Australian milk production by at least 100 million litres this season.
Fonterra has started giving its tanker fleet of 480 a makeover that will make its vehicles more visible and roads safer.
The increase in Fonterra's forecast milk payout last week appears justified, after prices in its latest internet auction lifted an average 2.4% yesterday.
Dairy farmers are on track for one of their biggest paydays with Fonterra yesterday lifting the forecast milk price for the current season by 30c a kg of milksolids to $6.90 a kg/ms.
Dairy giants Fonterra and Nestle are expanding their Dairy Partners America's joint venture into Chile.
Two of the country's largest dairy companies have raised the advanced milk payment to suppliers and farmer cashflows are benefiting.
Critics of how Fonterra measures its gearing ratio claim it could be as high as 60%, rather than the 44.9% for the year end July 31 as published in the co-operative's annual accounts.
New Zealand cannot afford to lose control of its land, says Fonterra chairman Sir Henry van der Heyden.
Rules requiring Fonterra to supply raw milk to competitors, was costing the country up to $450 million a year, a study commissioned by the co-operative has calculated.
A country cannot march on an empty stomach and unfortunately there is no free lunch. Conor English explains how the national cake can be made bigger.
Fonterra is making a second foray into a developing market, announcing plans to establish a pilot dairy farm in India.
Debate over a new capital structure at Fonterra has strengthened the co-operative at a time when competitors have eroded its market share to less than 90% of New Zealand's milk production, says the dairy giant's watchdog.
Fonterra, the largest processor of milk in the world, has set a record for the most milk processed in a single day.
Fonterra is to develop a second dairy farm in China which will house 3000 milking cows in addition to the more than 6000 it has on an existing property.