4.00pm
Fonterra Co-operative Group today announced a big boost for its 12,200 farmers -- a 20c/kg lift in its forecast payout for the current season, from $3.85/kg of milksolids to $4.05.
The payout boost will mean a lift in annual income of $19,800 for a farmer with the average milksolids production of
99,000kg.
Fonterra has also increased the advance payout rate for milk to $2.90/kg milksolids.
Announcing the increase, Fonterra chairman Henry van der Heyden said good market demand was supporting sustained strong commodity prices and had led to the board's revised payout.
"This revised forecast, early in the current season, will be welcomed by farmers who have had a tough start to the season because of the wet, cold spring," he said.
"They will especially welcome a boost to their cash flows from the higher advance rate".
The higher advance rate -- a proportional, staged payment to farmers through the dairy season -- will take effect on November 20.
- NZPA
