Westland Dairy cuts 2012 milk forecast
Fri, 06 Jul 2012 1:11p.m.
Westland Dairy Products, a dairy cooperative competing with Fonterra, is cutting its forecast 2012 milk price, mirroring a global side in dairy prices and a volatile New Zealand dollar.
The West Coast-based company lowered its milk solid payout by 20 cents per kilogram to a range of $6.00 to $6.20.
"Fluctuations in payouts are normal and certainly not unique to Westland or this season," chairman Matt O'Regan said.
"The volatility of the New Zealand dollar remains high and the spot (exchange) rate strengthened recently, which results in fewer New Zealand dollars available for payout."
The New Zealand dollar rose to a record versus the euro and a multi-month high against the greenback on Friday after central banks in Europe, England and China eased borrowing costs on concerns about the global economic outlook.
Hedging activities contributed $5 million to the payout this season.
In May, Fonterra Cooperative Group, the world's largest exporter of dairy products, cut its forecast 2012 milk price and flagged lower payments in 2013. It lowered the 2011/2012 forecast farmgate milk price by 30 cents to $6.05 a kilogram.
On Wednesday the price of dairy products fell 5.9 percent in the latest GlobalDairyTrade auction.
The ANZ Commodity Price Index, which measures a basket of New Zealand export commodities, fell to the lowest level in more than two years in June.
Post a Comment
Before commenting, please take the time to read our moderation guide
(Won't be published)
An Auckland car dealership has been sentenced for what Trade...
Primary Industries Minister Nathan Guy is blaming officials ...
Chairman Ben Bernanke told Congress that the US job market r...
Conservation groups vow to fight the decision made by Minist...
Car manufacturer Ford has announced that it's stopping vehic...
Copyright © 2013 MediaWorks TV. All Rights Reserved.