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Dairy co-operative Fonterra has confirmed a $5.20/kilo of milk solids payout for the season just ended.
The payout is a $2.39 drop compared with last season's record payout of $7.59 and is down from the $7.00/kg forecast for the season in May 2008.
Fonterra says the decrease reflects a fall in dairy commodity prices due to the global economic downturn and a drop-off in demand as buyers ran down stocks.
During the year Fonterra also had to contend with a volatile exchange rate and many farmers were recovering from drought.
Fonterra chairman Henry van der Heyden says the challenges and market volatility faced by Fonterra during 2008/09 season were probably unique in the lifetimes of anyone currently involved in dairying.
After an initially grim forecast in May this year for the current season, Fonterra on Tuesday lifted the forecast payout to $5.10/kg of milk solids from $4.55/kg.
Full year results
Fonterra on Wednesday also announced an 18% drop in group revenue from $19.5 million last year to $16 million in the year to July 31.
Fonterra says revenue was impacted by lower commodity prices as well as two months less trading in the latest 12-month period following last year's change in balance date from 31 May to 31 July.
However, profit before tax more than doubled during the period from $247 million in the 2007/08 financial year to $542 million.
Similarly, net profit almost doubled up 47% to $433 million on the previous period.
Fonterra says the profit available for distribution to shareholders is $603 million this year compared with $364 million in 2007/08.
The co-op has retained $12 million and will pay out $591 million to shareholders.
