Fonterra’s priority on milk payout
Fonterra’s milk payout to farmers remains the dairy giant’s priority, chairman John Wilson said at an annual meeting in Palmerston North on November 12.
But Wilson advised farmers to continue to be cautious in their budgeting ahead of next month’s update of this season’s payout forecast.
The $ 5.30kg milksolids forecast reflected the reality of the global cost of milk production, but consumption was expected to grow 36 per cent internationally by 2024.
Wilson said farmers’ cash flows would remain tight throughout next year.
Milk supply had grown from a daily peak of 66 million litres when Fonterra was formed in 2001 to 89 million litres this season.
Milk collection was 3 per cent ahead of last season, he said.
Revenue grew from $ 12.5 billion in 2001 to $ 22.3b last season, he said.