Arab Today, arab today fonterra boosts profit as low milk prices hit farmers
Last Updated : GMT 20:29:27
Arab Today, arab today
Arab Today, arab today

Fonterra boosts profit as low milk prices hit farmers

Arab Today, arab today

Arab Today, arab today Fonterra boosts profit as low milk prices hit farmers

Fonterra's chairman (L) John Wilson
Wellington - AFP

New Zealand's Fonterra -- the world's largest dairy cooperative -- announced a 123 percent rise in interim profit on Wednesday but warned its farmers faced "unprecedented pressure" amid a slump in global milk prices.

Fonterra said net profit for the six months to January 31 was NZ$409 million (US$276 million), up from NZ$183 million in the previous year.

The amount of milk processed rose eight percent to 12.6 billion litres and earnings before interest and tax increased 77 percent to NZ$665 million.

Fonterra dominates the dairy business in New Zealand where the sector accounts for about one-fifth of total exports and is considered crucial to the national economy.

The result was widely expected as global milk prices remain depressed after scraping 12-year lows last year as Europe lifted production and demand from China fell.

The low prices mean Fonterra pays less for milk, its main raw material, but hits the bottom line of its 10,000-plus shareholder farmers, who receive less for the product they supply to the cooperative.

"The supply and demand imbalance in the globally traded dairy market has brought prices down to unsustainable levels for farmers around the world, and particularly in New Zealand," chairman John Wilson said.

In a bid to ease the squeeze on farmers, Fonterra said it was doubling its interim dividend to 20 cents per share.

It also said a 20 cent dividend for the second half of the year, normally paid in October, would be paid early in two 10 cent instalments in May and August.

"Our management is aware of the need for strong performance to ensure that we get every possible cent back into farmers' hands during a very tough year," Wilson said.

Chief executive Theo Spierings insisted the outlook for the global dairy sector was good and prices should start rising later this year.

"Global dairy consumption per capita is growing at three percent (per year), so the long-term perspective is good. This is a temporary imbalance," he told reporters.

However, Fonterra's interim results documents added the rider: "Either a supply or demand shock could significantly change this outlook."

The Fonterra Shareholders' Fund, the listed arm of Fonterra, was up 0.34 percent at NZ$5.95 at midday in an overall market down 0.31 percent.

 

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today fonterra boosts profit as low milk prices hit farmers Arab Today, arab today fonterra boosts profit as low milk prices hit farmers

 



Arab Today, arab today
Arab Today, arab today Fadi Kataya explains secrets of  Nancy Ajram's newlook
Arab Today, arab today Messi visit will contribute in tourism

GMT 14:04 2017 Friday ,24 February

Messi visit will contribute in tourism
Arab Today, arab today Expresses Algerian history by woody figures

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures
Arab Today, arab today Mental conflict endures

GMT 07:36 2017 Friday ,24 February

Mental conflict endures
View News in Arabic - Business: اقتصاد دولي
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Wafaa Amer is happy for Sherihan’s return

GMT 07:36 2017 Wednesday ,22 February

Wafaa Amer is happy for Sherihan’s return
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 05:19 2017 Tuesday ,21 February

Salma Rashid happy for 'A Whisper of Love'

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact

GMT 20:33 2017 Friday ,17 February

To release new antiques collection

GMT 07:51 2017 Wednesday ,22 February

Mom's immune system accepts babies

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday