Fonterra forecast payout ‘great news’

22 September 2009

Fonterra forecast payout ‘great news’

News that Fonterra is revising its forecast payout for the 2009/10 season upward to $5.10 per kilogram of milksolids (kgMS), is welcome relief for the entire dairy industry.

“While we don’t wish to sound like Scrooge, Federated Farmers cautions all dairy farmers to maintain conservative budgets. This is a forecast after all and we have a long way to go, but it is a great way to start the new season, Lachlan McKenzie, Federated Farmers Dairy chairperson.

“The uplift to $5.10 kgMS reflects some pretty solid numbers over the past few months for dairy commodities. It’s a resounding tribute to the way Fonterra is navigating the toughest trading conditions since the Great Depression.

“Based on Ministry of Agriculture and Forestry modelling, the effect of the payout will be to turn around a projected cash loss for an average dairy farmer into a small cash surplus, but one that is considerably lower than the average household income.

“The forecast payout this season is also $0.10 kgMS less than the past season so talk of a full-blown recovery seems premature.

“Just think what the forecast would have been if the dollar was within its fair value range. One of the inverse effects of the upward revision may be to spike the dollar higher.

“Exporters need solutions and they need those solutions fast given the dollar seems caught between the Australian dollar and rebounding consumer confidence. Yet the domestic economy’s bounce resembles more of a ‘W’ shape than the ‘V’ many hope it to be.

“While tradable inflation seems under control, non tradable inflation is still of major concern and is an area where the Reserve Bank needs to focus its attention. The last thing we want is for the export economy to be punished for excesses in the domestic economy.

“A forecast payout of $5.10 kgMS makes me think that this could be the beginning of end and I can tell you the relief is palpable,” Mr McKenzie concluded.


An Arty Storm over the Kaipara, The Gum Boot Fairy and A Spanner in the Worx

"Storm Over Kaipara"
Overall Winner for the 2009 Paparoa Wearable Arts Gala

Designer: Grace Portanger Modelled by the designer

One thing I love about living here in the Kaipara District, are the events a lot of hard working people in our community put on during the year. One in particular, had me out with the camera taking loads of photographs of some very stunning arty creations. Each year Progressive Paparoa holds its Annual Wearable Arts Gala. This year the creations were outstanding, and naturally, it was way too hard to choose which one should be the over all winner from out of the categories. High School Student Grace Portanger took out the Supreme Award with her brilliant creation "Storm Over Kaipara" and it was one incredible creation.

There were all kinds of amazing creations coming down the runway. The Gumboot Fairy strutted her stuff, throwing her magic dust to get the grass growing again - now Spring has finally arrived. My great friend Anne designed the costume, and wonderful Sharon who sends me great articles for the Matakohe Music Makers stepped out to the music of the song 'These Boots were made for Walking". Hope the Gum Boot Fairy's gumboots are water tight unlike yours truly who still has to replace hers before the next winter comes..

"Gum Boot Fairy" Designer: Anne Shanks Model: Sharon Duffy

These Boots were made for Walking and that's just what they'll do...

The Gum Boot Fairy was a good thing to have around on that Saturday Night. There was a problem entry. We had to watch that one. He wanted very badly to put a spanner in the works..

"Spanner in the Worx" By "Spannerman"
Designer: James Duffy Model: Jim Duffy

He had it all worked out did the Spannerman. With his great big spanner he was going to put a spanner in the worx for sure. He strutted his stuff letting that audience know he was there to take that prize for certain...
Little did Spanner in the Worx know - the three clever Sugar Plum Fairies were soon on the case..
"Sugar Plum Fairies" Designer: Anne Shanks Models: Michelle Clark, Anne Shanks, Inaya Clark

Hmm those three look very familiar hold on a minute...hey that's Michelle and Inaya helping Anne sort out that Spanner in the Worx with all their good magic and wishes...

The Head Sugar Plum Fairy soon made sure that Spanner in the Worx was sent on his way but heck he did put on one great show. Well that's this post. I'm shattered after processing photos half of the night. I'll put up all of the contestants photos in the next blog post and they seriously were spectacular. In the end though, for the grand prize there could only be one winner - and that was Storm over Kaipara. Overall though everyone who entered was a winner and they all deserved credit for their incredible creations..more coming..tomorrow.