Fonterra

A proposal to slash the size of the Fonterra board from 13 to nine came in for hot debate by shareholders at the co-operative's annual meeting yesterday in the small Waikato town of Waitoa.

Fonterra Co-operative Group, the world's largest dairy exporter, has set targets of becoming the No1 dairy player in China and doubling its business in the country to $10 billion within the next five years.

An improved financial performance has led Fonterra to lift its forecast earnings-per-share range by 5c to 45c-55c, as it continues to cut costs.

Dairy giant Fonterra says its net profit after tax came to $506 million in the year to July 31, up 183% from the previous year's profit, and has raised its forecast payout for the current season.

Otago dairy farmer Greg Kirkwood has been elected deputy chairman of the Fonterra Shareholders Council.

Fonterra has cut its forecast farmgate milk price for the current season to $4.50 a kg of milk solids from $4.70 because of volatility in world markets caused by oversupply, with much of it coming from New Zealand.

Fonterra says it has cut its farmgate milk price forecast for 2014/15 to $4.70 per kg of milk solids, down from previous forecast of $5.30 a kg.

Independent Mid Canterbury dairy company Synlait increased lifted its profit 70% to almost $20 million for the full year, meeting its downgraded profit forecast made in May.

The New Zealand Markets Disciplinary Tribunal has fined Fonterra $150,000 for breaching continuous disclosure requirements to the NZX during the dairy manufacturer and exporter's botulism false alarm last August.

Fonterra's forthcoming first-half financial result will come under close scrutiny this week from analysts and farmers alike, including expectation of a revision in financial guidance.