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




About Robert Dabb

Mobile 027 255 3992
Office 06 323 3363
Home 06 353 0298

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.