Turnover does increase
Higher milk price affects Fonterra's profit
The annual figures of dairy cooperative Fonterra are strongly influenced by the milk price. While sales rose 12% to $19,2 billion, net profit fell 11% to $745 million. Fonterra is in a favorable mood for next season.
According to Fonterra, the increased milk price is positive for dairy farmers. The margins, which are made on consumer dairy, did suffer as a result. These have shrunk to 17%, compared to 21% in the previous season.
Fonterra processed about 2016% less milk in the past season, which runs from August 2017 to July 3. The bad weather in some periods is to blame for this.
Higher milk price
The dairy processor is positive about the prospects for the coming season. That is why the milk price for the 2017/2018 season has been set at $6,75* per kilo of milk solids. This is equal to the forecasts announced by the dairy at an earlier stage.
In addition, a dividend between €0,45 and €0,55 can be earned. The milk price is therefore higher than the cost price, which is estimated at approximately $5,25*. Over the past season, the payout price, including dividend, was $6,52*.
*New Zealand dollar
Wouter Job
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