Here’s a bit more detail further to Eamonn’s recent post on the NZD 6/ kg decision which has seen NZDUSD fall further to 0.8516 before finding a few buyers again to 0.8523 as I type. Bids noted down to 0.8500 still. AUDUSD up to 1.0143, highs not seen since Dec last year
- Fonterra expecting a 2014/15 dividend from its consumer operations of NZD20-25 cents
- cites a fall in dairy prices, down 34% in global auctions since February, and the high kiwi exchange rate
Chairman John Wilson says
We have seen strong production globally, a build-up of inventory in China, and falling demand in some emerging markets in response to high dairy commodity prices. In addition, the New Zealand dollar has remained strong.
Our milk collection across New Zealand last season ending 31 May 2014 reached 1,584 million kgMs, 8.3%higher than the previous season
Fonterra is the world’s largest dairy exporter and New Zealand’s largest company and paid out a record NZD 8.40/kg in 2013-14 season on the back of surging demand from China
Westpac estimates that the price drop will shave 0.4% off NZD GDP