Fonterra. Fonterra Australia has released end of financial year figures showing a $19.2 billion revenue, an increase of 12 per cent on the previous season.
The co-operative also announced a significant increase in cash payout of $6.52 made up of a farmgate milk price of $6.12 per kilogram of milk solids and a dividend of 40 cents per share.
Fonterra Australia managing director Rene Dedoncker says the co-op is generating sustainable returns allowing it to now grow to meet higher demands.
“Farmers are seeing us invest in capacity at Wynyard and Cobden (Victoria) and we have just completed the $140 million rebuild of our Stanhope (Victoria) cheese plant. We have added 75,000 metric tonnes of capacity in the last 18 months.”
Outside of New Zealand, Australia is the largest milk supplier to Fonterra with volumes growing to two billion litres from 1.6 billion last season and a waiting list for new suppliers.
The forecast total available for payout to farmers for the 2017-18 season is $7.20 to $7.30 per kilogram of milk solids, comprising a forecast farmgate milk price of $6.75 per kilogram of milk solids and forecast earnings per share ranging from 45 to 55 cents per share.