Fonterra sets 2014/15 milk payout at $NZ4.40, raising it from $3.85
per kg of milk solids
- Bank analyst expectations had been in the range from NZ$4.25 to $5
- Forecast 2015/16 payout at $NZ4.60
- Expects at least a 5% drop in 2015/16 milk supply
- Fonterra add that while supply is easing, a lift in demand is yet to be seen
Prices for dairy have lifted globally (if you follow the auctions, we've seen a good bounce already), the forecast reflects these rises.
Note that last bullet point, Fonterra not seeing a global demand lift. This has implications beyond just dairy, it's a factor across many commodities.
