Satisfactory return for Farmers, implemented changes

MEDIA RELEASE

25 September, 2013

Satisfactory return for Farmers, implemented changes to ANZ business welcome

The Fonterra Shareholders’ Council, which safeguards the interests of the dairy Co-operative’s 10,500 Shareholders, said the final payout of $6.16 ($5.84 farmgate Milk Price and $0.32 dividend) for a fully shared-up Farmer announced today was an accurate reflection of the season.

Council Chairman, Ian Brown: “Given the pressure placed on Fonterra by this year’s drought and the unpredictability experienced in international markets the Co-operative has delivered a satisfactory return for Farmers.”
Mr Brown said the success of the integrated ANZ (Australia/New Zealand) business, which has encountered tough market conditions of late, is vital for Fonterra.
“The ANZ business has been working hard to adapt to the changing Australian business environment.
“Accordingly, changes have been made to the ANZ business, there’s a cost associated with these and the Council will continue to monitor the situation.”
Mr Brown was satisfied with the final dividend and said the Co-op had once again displayed a welcome degree of pragmatism in its decision on retentions given the cash flow issues being faced by some Farmers.
“That Fonterra delivered a final dividend of 32 cents provides the Council with sufficient confidence that the business is working efficiently.
“LATAM (Latin America) and AME (Asia/Middle East) have again delivered at a local level and New Zealand Milk Products had a solid year.
“We are pleased with the current status of the Gearing Ratio as this will allow flexibility moving forward.
“Farmers will be happy to put the climatic challenges of last season behind them and are buoyed by the forecast payout for next season.”

ENDS

ABOUT THE FONTERRA SHAREHOLDERS’ COUNCIL

The Fonterra Shareholders’ Council represents the interests of Fonterra Farmers to the Board of the Co-operative and plays an active role in monitoring and assessing the governance and performance of Fonterra. There are 35 Councillors who are all Shareholders elected by their fellow Farmers in wards across New Zealand.

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