Fonterra

Dairy giant Fonterra has confirmed it is shedding 300 jobs after a review of its support services.

Fonterra has confirmed a guaranteed milk price of $7 per kg of milk solids (ms) for its 2013-14 season pilot scheme, which it says has already attracted strong interest from farmers.

Fonterra's first forecast for the 2013-14 dairy season, due tomorrow, is expected to add momentum to the New Zealand economy, Westpac economist Doug Steel says.

A supply offer enabling Fonterra farmer shareholders to sell the economic rights of some of their shares will open today. They will have the opportunity to offer to sell the economic rights of up to 25% of their minimum required shares (wet shares) to the Fonterra Shareholders Fund.

Fonterra is renewing contracts for some of its organic dairy farmers, less than two years after slashing the number of supplier farmers throughout the North Island, but the news is not so good for Northland suppliers.

Fonterra's increased forecast milk price will not be enough to make up for the effects of drought, particularly in the North Island, Federated Farmers says.

A supply offer enabling Fonterra farmer shareholders to sell the economic rights of some of their shares will open in May.

The dairy sector may weather the drought better than beef and sheep farmers but Fonterra's recently launched shareholder fund units could take a hit in value.

Groups already working to improve water quality in the Waituna Lagoon near Invercargill have welcomed funding from dairy giant Fonterra.

Fonterra and Netherlands-based A-ware Food Group have signed an agreement to develop a cheese plant and dairy ingredients plant in Heerenveen, in the north of the Netherlands.

Dry weather conditions, particularly in the North Island, in mid-December and January had resulted in a slowdown in milk supply growth, Fonterra chief executive Theo Spierings said yesterday.