16 Nov 2015

Fonterra's earnings rise, but milk payout remains steady

12:48 pm on 16 November 2015

Fonterra has increased its full year forecast earnings by as much as 10 percent but has left its forecast farmgate milk price unchanged.

Fonterra chairman John Wilson

Fonterra chairman John Wilson Photo: AFP

The dairy co-operative says that earning will rise to between 45 and 55 cents a share, up from an earlier forecast of 40c to 50c.

The forecast price to be paid to farmers remains at $4.60 per kilo of milk solids, with an annual dividend of between 35 and 40 cents a share, boosting the total cash payout to between $4.95 and $5 a kilo.

Chair John Wilson said the increase reflected the strength of the three months ended in October.

Fonterra has also increased the rate of support payments to its farmers - going up to 25 cents in December, from the previous rate of 18 cents.

The company recently shed 750 jobs as part of a strategic review to reduce costs in the face of low global dairy prices.

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