The high Kiwi dollar has cost Fonterra's farmer-shareholders around a billion dollars in lost revenue. Yet its result, in a week of job losses, should remind everyone the exceptional opportunities New Zealand has with food.
"Given trading conditions, these results are a good send off for Sir Henry van der Heyden and Theo Spierings' first anniversary as Chief Executive," said Willy Leferink, Federated Farmers Dairy Chairperson.
"The farmgate milk price of $6.08 per kilogram of milksolids (kg/MS), while down on last year, is up three cents on what was forecast in May. With the dividend it means a final payout of $6.40 kg/MS and that makes it the sixth best payout in the past 20 seasons.
"The three extra cents for last season is a small but welcome bonus but the 32 cent dividend will be a little on the disappointing side for some farmer-shareholders.
"Because the payout trajectory was well telegraphed, the eyes of most farmers are on the tough season we're now in. Instead of the $6.08 kg/MS milk price announced today, we are staring down the barrel of $5.25.