Positive signs for farmers despite payout drop

Fonterra’s farmers’ resilience and some early signs of a turnaround in commodity prices should help to soften the news of the Co-operative’s announcement of a 30 cent drop in its forecast payout range for the 2012/13 season, says Fonterra Shareholders’ Council Chair, Ian Brown.

“Over the past season a decline in Global Dairy Trade (GDT), causing soft prices alongside a strong New Zealand dollar has affected farmers’ bottom line.

“However, the 17% improvement in GDT over the last quarter is a positive sign that improvement may be just around the corner.

“At some stage the massive effort we’ve been putting in, the record volumes we’ve been producing and the product we’ve been moving needs to positively affect our payout, said Mr Brown.

“The current payout range is a reflection of the volatility of the market.  Until it comes right we’ve just got to keep doing what we do best – work our farms, milk our cows and be prudent in our financial planning.

“I’m aware that this can be a very expensive time of the year for farmers and want them to be aware that help is available if they need it.  Your local Shareholders’ Councillor and various industry bodies are there to advise and assist farmers where required.”