New payout forecast great for New Zealand

The Fonterra Shareholders’ Council says every New Zealander should be celebrating Fonterra’s payout announcement today.

Shareholders’ Council Chairman Simon Couper said: “We have hit the trifecta for the country – record payout and production for this season and a record opening forecast for next season.

“There can be no doubt that dairying is the engine that is powering the New Zealand economy.”

The opening forecast range of $7.15 - $7.25 per kilogram of milksolids (per kg MS) is the highest ever signaled.

Mr Couper said the announcement will be welcomed by farmers, many of whom have had a difficult climate to manage this season.

“This is a good start for next season and will give farmers the confidence to invest in their business.”

The NZEIR report showed that every $1 in payout brought in to the country by the dairy industry is equivalent to $300 for every New Zealander. Dairying continues to be a strong performer for the country.

Mr Couper said: “The strength of the Fonterra co-operative model is that it returns the full benefit of global returns to New Zealand.”