Fonterra Shareholders’ Council disappointed

MEDIA RELEASE

28 January 2009

Fonterra Shareholders’ Council disappointed by forecast payout drop

The Fonterra Shareholders’ Council says it is disappointed by the magnitude of the drop in Fonterra’s forecast payout for the season.

Shareholders’Council Chairman Blue Read said although the Board had signalled that global financial and market conditions were putting pressure on payout, the 90 cent drop announced today will surprise many Fonterra farmers.

“After a record payout last year, we went into the season with a payout forecast of $7.00 per kilogram of milksolids. We are now confronted by a reduction of more than 25% in our farm revenues for the season.

“Dairy farmers are used to fluctuating forecast adjustments and the uncertainty this creates but in this environment we would like to see more timely updates.

“These are challenging times and like many New Zealanders, Fonterra farmers are feeling the pinch”, Mr Read said.

About the Fonterra Shareholders’ Council
The Fonterra Shareholders’Council represents the interests of Fonterra farmers to the Board of the co-operative and plays an active role in monitoring and assessing the governance and performance of the co-operative. There are 35 Councillors who are all shareholders elected by their fellow farmers in wards across New Zealand. The Council meets regularly and discusses matters relating to the co-operative and its members.

ENDS

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