News
Fonterra maintains Farmgate Milk Price
5 Aug 2016Fonterra has announced a forecast earnings per share range for the 2017 financial year of 50 to 60 cents. The forecast Farmgate Milk Price has been maintained at NZ$4.25 per kilogram of milk solids (kgMS).
![Fonterra maintains Farmgate Milk Price](/img/ingnet-logo.png)
Fonterra has announced a forecast earnings per share range for the 2017 financial year of 50 to 60 cents. The forecast Farmgate Milk Price has been maintained at NZ$4.25 per kilogram of milk solids (kgMS), making the total payout available to farmers in the 2016/17 season $4.75 to $4.85.
Chairman John Wilson said the solid forecast earnings per share range reflects performance improvements across the business and would be welcomed by farmers. However, with the Farmgate Milk Price forecast remaining at $4.25 per kgMS, it is another financially challenging season for farmers.“The Co-operative is aware of how tough the situation on farm remains,” said Wilson. “We are focused on delivering as much cash as possible to our farmers by bringing payments forward while maintaining a strong balance sheet. This forecast is our best estimate at this early stage of the season. We will continue to update our farmers as we move through the season.”Wilson said the $4.25 Farmgate Milk Price reflects the continuing global uncertainty and the high NZD/USD exchange rate which continues to impact the competiveness of New Zealand dairy exports.“The recent weakening of the Euro, combined with the continued strength of the New Zealand dollar, has meant a price advantage for European export dairy products,” said Wilson. “We expect global milk supply and demand to come into balance over the course of this season. Farmers globally are producing less milk in response to lower prices and we are forecasting a three per cent reduction in our New Zealand milk collection for this season.”Chief Executive Theo Spierings said the returns from the ingredients, consumer and foodservice businesses continue to grow in-line with Fonterra’s business strategy to convert more milk into higher returning products.“We are seeing the benefits of our investments in manufacturing over recent years,” said Spierings. “We now have more flexibility to make the right products at the least cost, delivering better returns for our farmers’ milk. Our good progress in continuing to increase value through our consumer and foodservice businesses, particularly in important markets such as China, Malaysia, Indonesia, Sri Lanka, Oceania and Latin America, is reflected in the lift in the earnings per share forecast.” “Constantly improving the performance of our business is an absolute priority and puts us in a strong position to create more value for our farmers. We are generating significant improvements and cash benefits through our ongoing business transformation that contribute to both our Farmgate Milk Price and our earnings.”Related news
![Consumers dislike faba beans’ sensory profile](/47/pdcnewsitem/12/45/47/th124547.png)
Consumers dislike faba beans’ sensory profile
3 Jun 2024
Consumers display low acceptance of faba beans, with sensory properties such as bitterness a core concern, a study suggests. However, for product varieties such as cocoa-free chocolate, this attribute could prove to be a benefit.
Read more![Food scientists uncover new way to preserve nutrient and flavour quality](/47/pdcnewsitem/12/45/35/th124535.png)
Food scientists uncover new way to preserve nutrient and flavour quality
29 May 2024
Researchers have developed a method that guarantees food safety for low-moisture products, such as dried milk, while maximising quality by retaining vitamins, minerals, and flavours, they say.
Read more![FDA scrutinizes milk pasteurisation over HPAI risk](/47/pdcnewsitem/12/45/33/th124533.png)
FDA scrutinizes milk pasteurisation over HPAI risk
28 May 2024
The US Food and Drug Administration (FDA) is undertaking additional scientific research work to ensure that approved pasteurization processes are rigorous enough after retailer milk tests showed contamination from Highly Pathogenic Avian Influenza (HPA...
Read more![Magnum targets ice cream lovers’ moods with new flavours](/47/pdcnewsitem/12/42/41/th124241.png)
Magnum targets ice cream lovers’ moods with new flavours
2 May 2024
Unilever-owned Magnum has released a suite of “mood-inspired flavours” as the 2024 ice cream season kicks off. The offerings, marketed as the Magnum Pleasure Express, are Magnum's first foray into the “mood-food” category.
Read more![The eight global food trends shaping the future of dining](/47/pdcnewsitem/12/41/92/th124192.png)
The eight global food trends shaping the future of dining
23 Apr 2024
Unilever’s Future Menu Trend 2024 report identifies the global food trends shaping the food service industry, providing insights into changing consumer preferences that could provide inspiration for packaged food and drink brands.
Read more![Report outlines how the US interfered with marketing restrictions on formula across the globe](/47/pdcnewsitem/12/41/93/th124193.png)
Report outlines how the US interfered with marketing restrictions on formula across the globe
18 Apr 2024
A recent investigative report by ProPublica unmasked the extensive interference by the US government in international regulations concerning the marketing of formula.
Read more![Ultra-processed food intake in South Africa at concerning levels, study suggests](/47/pdcnewsitem/12/39/42/th123942.png)
Ultra-processed food intake in South Africa at concerning levels, study suggests
19 Mar 2024
As South Africa considers introducing front-of-pack warning labels and strict marketing limits for unhealthy foods, research has found that low-income South Africans get around half of their calories from ultra-processed foods (UPFs) – “a cause for con...
Read more![India’s mithai market develops new ingredient and flavour profiles](/47/pdcnewsitem/12/39/31/th123931.png)
India’s mithai market develops new ingredient and flavour profiles
18 Mar 2024
Mithai is a hugely popular dessert and sweet snack in India and manufacturers are experimenting with unique ingredients, new flavour combinations, and healthier versions to capture new audiences.
Read more![Unilever and Perfect Day’s animal-free dairy dessert: Is precision fermentation the future of dairy?](/47/pdcnewsitem/12/38/53/th123853.png)
Unilever and Perfect Day’s animal-free dairy dessert: Is precision fermentation the future of dairy?
6 Mar 2024
Perfect Day, a precision fermentation dairy supplier, has partnered with Unilever's Breyers, a brand of ice cream and frozen dairy desserts, to launch Breyers lactose-free chocolate frozen dessert.
Read more![Macauba oil emerges as potential rainforest-friendly palm oil alternative](/47/pdcnewsitem/12/38/03/th123803.png)
Macauba oil emerges as potential rainforest-friendly palm oil alternative
1 Mar 2024
Producers and researchers consider the rainforest-friendly credentials of Macauba palm oil and whether its sustainability credentials offer an opportunity to replace palm oil.
Read more