28 Aug 2013

Fonterra payout could take a hit

6:06 am on 28 August 2013

Business journalist Rod Oram says the contamination scares involving Fonterra could affect a dividend to suppliers.

The company has lifted its forecast payout for the 2014 season by 30 cents to $7.80 per kg of milk solids.

Mr Oram said the estimated dividend of 32 cents per share on top of that could take a hit from the contamination scares.

He said the $7.80 per kg payout is driven on international prices.

Fonterra said commodity prices are expected to remain higher for longer than previously forecast.

It will provide an update on its performance when it announces its annual result later next month.