.
Fonterra Shareholders’ Fund Limited (ASX:FSF, NZE:FSF) has cut its milk price forecast for the current season, set a milk price for the new season and realigned its Latin America Joint Venture (JV) with Nestle.
For the current season the dual-listed dairy company has lowered its forecast to a milk price of $NZ8.40, down from an earlier forecast of $ NZ 8.65. For the 2014/15 season Fonterra has set an opening milk price of $NZ7.00 per kilogram of milksolids.
Chairman John Wilson says the new season's forecast remains historically high but also reflects current market conditions and farmers will exercise caution at this early stage in the season.
Separately Fonterra says it expects to gain a cash payment of about $NZ96 million in the following financial year after realigning its JV with Nestle.
Under the partnership Fonterra will take a 51 per cent interest in the biggest dairy company in South America called Dairy Partners Americas with the remainder held by Nestle.
Fonterra Shareholders’ Fund reported a net profit of $13.25 million in the 2013 financial year.
