Chairman John Wilson says the lower forecast milk price reflects a prudent approach to ongoing volatility in the global dairy market.
Global dairy company, Fonterra Co-Operative Group (ASX:FSF) has dropped its Farmgate Milk Price by $0.35 to $6.40 per kilogram of milk solids.
Meanwhile, a decline in the NZ dollar since Fonterra's last update of its milk price, which is supportive of exporters, may not flow through fully until the following season, he said.
"What is driving this forecast is that despite demand for dairy remaining strong, particularly in China, other parts of Asia and Latin America, we are seeing strong production out of Europe and continued high levels of European Union intervention stockpiles of skim milk powder".
The impact on Fonterra was being partly offset by a weaker New Zealand dollar, he said.
Fonterra's revised forecast still sits above DairyNZ's latest estimate of breakeven, of $5.20-$5.25/kg, and compares with last year's price of $6.12/kg. The cooperative has reduced its forecast by 1% to 1,525 million kgMS - the same volume as last season.
"Dairy prices have weakened since the last update", ASB Bank senior rural economist Nathan Penny said.
"Short-term price risks are largely evenly balanced, with dry NZ weather on one hand and improving global production on the other", he said.
Sales volumes were down 20 percent and the gross margin, of 16.7 percent, was also lower.
The lower gross margin was in line with the second half of previous year.
Revenue rose 4 percent over a year ago to NZ$4 billion.
Meanwhile, Fonterra said its first quarter revenue had risen by 4 percent on a year ago, but sales volumes and profit margins have fallen because of the wet spring.
The gross margin from ingredients fell to 8.1 per cent from 12.1 per cent. Spierings said Fonterra is confident of meeting its full-year forecasts following revisions after the recent Danone announcement.
An arbitration tribunal had ordered Fonterra to pay Danone a smaller than expected 105 million euros ($124.05 million) over a contamination scare.
"We are focused on continued tight operational and financial discipline and a key eye on our customers' needs to maximise sales opportunities".
It gives me time to get healthy and the team time to find continuity. "It's the best possible scenario, time-wise". The Yahoo! Sports story said that Curry's right ankle will be re-evaluated in a couple weeks.
Since June 11, 2017, it had 0 insider purchases, and 2 sales for $3.19 million activity. (NASDAQ:CSCO) was sold by Jacoby Rebecca. The stock has a market capitalization of $1.77 billion, a price-to-earnings ratio of 21.27 and a beta of 0.50.
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Giroud then retook his 64th minute penalty to make it 5-0 before Mohamed Elneny struck a curling shot to make it 6-0. As expected, the attendance for the game was rather less than the 54,000 tickets apparently sold by Arsenal .
Trent Franks , R-Ariz., is expected to announce his resignation Thursday evening, multiple Republican sources told NBC News. Right now, it is unclear why he is stepping down, but sources say there have been rumors of inappropriate behavior.
The prosecution witness told the court that Nawaz Sharif gave Rs12 million cheque to his daughter, Maryam Nawaz, on June 13, 2015. The court after hearing arguments from both sides on Thursday rejected the objections raised by Hamid against Shahzad's status.
A press release by Jet Airways said the net profit for the group stood at ₹71 crore while net debt reduced by ₹194 crore. In a later note, the airline said it had made a profit of Rs 190.22 crore past year on the sale and leaseback of planes.
The court challenge had been raised by the Liberty Party, whose candidate Charles Brumskine had placed third. President Ellen Johnson Sirleaf is due to step down on January 18 after completing two five-year mandates.
At present, all possible actions have been taken to prevent he failure of banks and protection of interests of depositors. This has raised concerns that common people may have to bail out banks with their hard-earned money if a bank goes under.
After $0.80 actual EPS reported by Dorman Products, Inc. for the previous quarter, Wall Street now forecasts 7.50% EPS growth. Considering that the stock daily volume of 13.4 million shares, this represents a pretty noteworthy trading in volume size.
Spokesman Nick Ruffner says the lighting is created to help customers and employees "avoid unsafe situations". In 2016, Westmoreland County had 174 overdose deaths, with the numbers in 2017 set to eclipse that .
Lewandowski: Trump right to endorse Moore
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Get free queso at Chipotle on December 12
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MSNBC reverses decision to fire Sam Seder
Cernovich presented the old tweet as an endorsement of rape, leading to widespread outrage among conservatives on social media. Chris Hayes, one of the network's star hosts, went public with his anger about MSNBC's treatment of Mr.
Pfizer Inc. (PFE) — Recommendation Trends Analysis
It worsened, as 43 investors sold BBY shares while 213 reduced holdings. 24 funds opened positions while 59 raised stakes. Market capitalization is the total market value of all of a company's outstanding shares. (NYSE:BBY) for 607 shares.
Pearl Harbor Day commemorated today
As witnesses to the war pass, the monumental size of the conflict seems to shrink in the public's conscious. Three days later, Japan's allies Germany and Italy declared war against the United States.
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Kim Kardashian Accused Of Plagiarising High Fashion Brands
Gvasalia is a long-time friend of Kardashian and her husband Kanye West , and the dress' design is named after him ('The Demna'). You might recognize the silver dress from Kim and North West's matching mommy-and-me moment last September .