30 December 2008
Fonterra warning on payout not unexpected
“The thing critical to Federated Farmers and to supplier-shareholders is for Fonterra to be realistic with its next forecast.
“While we don’t expect Fonterra’s next revision to be as bad as some smaller companies have forecasted, dairy farmers need better certainty to undertake financial budgeting. These constant revisions are making this difficult. It’s time for Fonterra to under promise and over deliver.
“Around $12 million from on-farm incomes is cut every time a cent is shaved off the milksolids payout. This impacts the entire economy.