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Tag Archives: dairy

NZ dollar gains as dairy prices rise in latest GDT auction, sapping rate cut expectations

The New Zealand dollar gained after dairy prices rose at the latest GlobalDairyTrade auction, soothing concerns about the local economy and eroding expectations the Reserve Bank will cut interest rates this month. The kiwi rose to 65.41 US cents at 8am in Wellington form 64.99 cents yesterday. The trade-weighted index advanced to 70.77 from 70.51 yesterday. Prices for whole milk powder, New …

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Coriolis: Foreign-owned firms still grabbing most end value from NZ dairy ingredients

Most of the end value of New Zealand’s dairy ingredients is being captured by foreign-owned firms beyond the border, a new report shows. The government-commissioned Coriolis research report on growing consumer demand for dairy products in Southeast Asia is the latest in a series on New Zealand’s food and beverage industry aimed at achieving the government’s goal of doubling exports to 40 percent …

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2 Milk turns to annual loss on increased costs; no action on takeover bid

A2 Milk, the specialty milk marketing company, turned to an annual loss despite a hike in revenue as it invests in offshore expansion and absorbed costs from its ASX listing. The net loss after tax was $2.09 million for the year ended June 30, compared to a $10,000 profit the year earlier, the Auckland-based company said in a statement. Revenue rose 40 percent to …

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Fonterra wants to refuse to supply milk to large competitors and buy from new suppliers

Fonterra says it should no longer be required to accept all milk from new suppliers or to have to make milk available to large processors, apart from Goodman Fielder. In submissions to the Commerce Commission, which is undertaking a government-ordered review of the industry’s competitiveness, rival processors have said they either want the status quo or the regulations tightened. Fonterra …

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Fonterra overshoot on 2015 advance payment worsens 2016 farmer cash flows

Milk prices have dropped so dramatically that Fonterra Cooperative Group effectively overpaid farmers under an advance payments scheme last year, sapping funds available to pay out farmers at the end of the season and leaving them short of cash even before last week’s deep cut to the 2016 forecast payout. “Last year, Fonterra came out with a higher advance rate schedule during the year, …

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NZ dollar gains as Fonterra offers farmer support, primps dividend while cutting forecast

The New Zealand dollar gained after Fonterra slashed its milk payout forecast as expected while offering interest-free loans and a slightly improved dividend to its farmers to soften the blow. The kiwi rose to 65.52 US cents as at 5pm in Wellington, from 65.43 cents before the Fonterra statement and from 65.42 cents late yesterday. The trade-weighted index advanced to 70 from 69.83. Fonterra cut …

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Fonterra slashes payout, farmers offered $430m cash advance

Fonterra  has slashed its farmgate milk price for the 2015/16 season by $1.40 to $3.85 per kilogram of milk solids but is supporting cooperative members with an additional 50 cents per shared-up kilogram of milksolids in the form of an interest-free loan. The initiative softens the blow for farmers, who’ve seen prices tumble from $8.40 pert kg/ms in 2014, but comes at …

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NZX milk futures point to further declines in prices

A slump in the price of whole milk powder, New Zealand’s key dairy export, is likely to continue according to traders who are pricing in further declines on the NZX futures market. The price for whole milk powder dropped 13.1 percent to an average US$1,848 a tonne at the latest GlobalDairyTrade auction overnight on Wednesday as many of the monthly contracts failed …

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Fonterra top brass on notice from farmers as 523 jobs go in shake-up

Federated Farmers says top management should be leaving Fonterra Cooperative Group if results don’t start improving in the next couple of years. The comments, from Fed Farmers dairy chair Andrew Hoggard were in response to the confirmation today by the world’s largest dairy exporter that it will cut 523 jobs to save up to $60 a million a year on its payroll …

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Fonterra’s 2015/16 payout cut now expected to below latest season’s

Weaker dairy prices have prompted analysts to pull back their expectations for Fonterra Cooperative Group’s payout to farmers this season, with most now expecting this year’s payout will be below last year’s, which is likely to put pressure on farm incomes and see debt levels rise. The price for whole milk powder, New Zealand’s key commodity export, dropped 13 percent …

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