Fonterra CEO Expects Some Dairy Farmers to Enjoy Capital Return Following Sale of Consumer Unit.
AI Summary1 min read
TL;DR
Fonterra's CEO expects dairy farmers to be cautious with a NZ$3.2B capital return from a unit sale, with some using it for deferred expenses. The co-op forecasts strong milk prices and maintains a NZ$10/kg milksolids payment.
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Fonterradairy farmerscapital returnmilk pricesLactalis
Fonterra CEO Miles Hurrell expects dairy farmers to be cautious when receiving a NZ$3.2 billion capital return next year from the sale of its consumer unit to Lactalis. Some farmers may choose to enjoy part of the windfall, as they have deferred maintenance and capital investments. Fonterra has forecast another strong season for milk prices and is maintaining its projection of paying NZ$10 per kilogram of milksolids in the current season.
