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WELLINGTON May 24 New Zealand dairy firm
Fonterra on Thursday lifted its forecast milk
payout for the 2016-17 season by NZ$0.15 to NZ$6.15 per
kilogram, a sign the recovery in dairy prices was finally
filtering through to the dairy giant.
"World dairy prices have risen in recent months and as we
near the end of the season we have more visibility and certainty
which makes us confident of our $6.15 position,” Fonterra
chairman John Wilson said in a statement to the stock exchange.
Global dairy prices have risen five times in a row the past
two months which has eased jitters that a recovery could be
After two years of declining prices, farmers and analysts
had been concerned that a 50 percent rebound during 2016 was
waning when prices were dented at the beginning of the new year
due to a global supply increase.
The firm said the more lucrative prices over the past few
months drove its revenue 8 percent higher in the nine months
ending April to NZ$13.9 billion.
The company said in a statement to the stock exchange that
it was forecasting a Farmgate Milk Price of NZ$6.50 per kilogram
for the 2018 season.
Fonterra held steady its target dividend in 2017 of NZ$0.40
In its half-year results released in March, the co-operative
had slashed its forecast earnings per share from NZ$0.50-NZ$0.60
per share to NZ$0.45-$0.5 per share.
(Reporting by Charlotte Greenfield; Editing by James Dalgleish)