27 Aug 2013

Fonterra lifts milk payment

10:28 pm on 27 August 2013

Fonterra has increased its forecast milk payout to farmers for the second time in a month for the 2014 season, lifting it by 30 cents to $7.80.

The jump in the price comes despite the botulism scare and the company having to shut down its operations in Sri Lanka briefly following questions about the integrity of its product there.

Despite the increase, the estimated dividend of 32 cents per share remains unchanged, which amounts to a forecast total payment of $8.12.

Fonterra says the higher forecast farmgate price reflects stronger international prices for dairy.

The company announces its annual results in a month.