Farmers Understanding of Milk Price Drop

Farmers Understanding of Milk Price Drop, Expecting Solid Return on Shares

Fonterra Shareholders’ Council Chairman, Ian Brown said Farmers would be understanding of the Co-operative’s decision to reduce the 2014/15 forecast farmgate Milk Price to $4.70 per kg/MS.

Mr Brown: “Most Farmers understand the reality of the situation is that this year will not be a great one in terms of Milk Price.

“Farmers will be focussed on getting through this year and ensuring they place their businesses in the best possible shape for next season.”

The Co-op maintained its estimated dividend range of 25-35 cents per share and Mr Brown said Farmers will be expecting a tangible return on their investment in the Co-op.

“Fonterra has had a significant focus on implementing the strategy over the past couple of years and it is important, especially in a season where the Milk Price is down, that Farmers receive the full benefit for their investment in the integrated supply chain that their Co-op provides.”

ENDS

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