Latest on Dairy Payout… a 7 on its way!

On 23 May 2018 the Fonterra Board increased the 2017/18 season forecast Farmgate Milk Price by 20 cents to $6.75 per kgMS, bringing the total forecast cash payout to $6.90-$6.95 per kgMS – the third highest payout in the decade.

The Co-op also announced a 2018/19 opening season forecast Farmgate Milk Price of $7.00 per kgMS, plus 15-20 cents/share dividend, meaning total farmgate payout of $7.15-7.20.

Strong demand, the NZD/USD exchange rate, and current price signals – especially for milk fats were reasons given for the confidence to set the opening forecast at this level.

The graph below here tracks Payout (milk price +  share dividend) since 2000

payout history to 2018F

 

fonterra share graph

 

 

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About Robert Dabb

Mobile 027 255 3992
Office 06 323 3363
Home 06 353 0298
Email: robertd@ruralandlifestylesales.com

Robert has been involved in the rural sector his whole working life. This includes as a Farm Consultant, specialising in dairy and a Regional Manager for Fonterra Co-operative Group from 2000 through to 2006 and has been in real estate since then. He holds a Bachelor of Agricultural Science degree from Massey University. With a wide network of contacts across rural industry, he is well positioned to professionally profile rural properties.