Sep 23, 2014 8:34 PM

Fonterra posts revenue jump; cuts forecast payout

The Associated Press

WELLINGTON, New Zealand (AP) New Zealand dairy giant Fonterra posts record revenue but cuts its projected payout to farmers amid market volatility.

On Wednesday Fonterra announced revenue rose 19 percent to 22.3 billion New Zealand dollars ($18 billion) in the year ending July when compared to the previous year. After-tax profit was down 76 percent to NZ$179 million.

Last year the company paid farmers a record NZ$8.40 per kilogram of milk solids, but this year projects it will pay them just NZ$5.30, down from an earlier forecast of NZ$6.

Fonterra is the world's largest exporter of dairy products and New Zealand's biggest company, a cooperative owned by 10,500 farmers.

Fonterra Chairman John Wilson says the latest forecast reflects market volatility due to global geopolitical and economic uncertainty and an imbalance in supply and demand.


--  Dealing with the Disease of Addiction? Click here for help --

More from

NH1 News Debates
NH1 News Replay

NH1 on Twitter

NH1 SkyView Cameras

NH1 on Facebook

Check out NH1 News Rail Polls on LockerDome on LockerDome