Fonterra, the world’s largest dairy exporter, has posted a rise in first-half sales on the back of the weakening New Zealand dollar.
Go deeper with GlobalData
Sales rose 9.6% to NZ$8bn (US$4.6bn), up from NZ$7.3bn last year. However, on a constant-currency basis, sales would have dropped 7.6% due to declining global dairy prices.
World dairy prices have witnessed a dramatic fall from the highs seen last year due to the slowing global economy, declining demand and increasing exports from the US and Europe.
As a consequence, Fonterra has slashed its forecast payout to farmers three times since January. The forecast payout currently stands at NZ$5.10 per kilogram of milk solids.
“Our result shows Fonterra to be in reasonable shape given the turmoil in the world economy,” Chairman Henry van der Heyden said.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
