Fonterra holds forecast payout for current season steady

[WELLINGTON] Global dairy giant Fonterra Co-operative Group, Monday held its forecast payout for the current season steady amid continuing global uncertainty.

The world's largest dairy exporter said it would pay NZ$4.25 (S$4.10) per kg of milk solids in the 2016-17 season, unchanged from a prior forecast. "It is another financially challenging season for farmers,"said Fonterra Chairman John Wilson.

Mr Wilson said the price reflected the continuing global uncertainty and the high New Zealand dollar exchange rate which continued to impact the competiveness of New Zealand dairy exports.

Fonterra also announced a forecast earnings per share range for the 2017 financial year of 50 to 60 New Zealand cents, making the total payout available to farmers in the 2016-17 season NZ$4.75 to NZ$4.85.

REUTERS