Record milk production and sales have boosted Fonterra's final payout for last season to $4.46/kg of milk solids - indicating a $5.6 billion injection to the economy on the eve of what is widely tipped to be another interest rate rise.
But company chairman Henry van der Heyden
is unconcerned about the potential effects of a $600 million rise on last year's payout, saying he and the board are comfortable with the result.
Fonterra's 11,600 dairy farmers can look forward to an average extra $40,000 on their 2006 incomes, after the co-operative declared an effective payout of $4.50/kg of milksolids, including added premiums for autumn and winter milk, organics and specialty products such as colostrum.
That result is 15c - or 3.4 per cent - higher than Fonterra's last forecast for the 2007 financial year of $4.35/kg made in May.
The announcement means the average income for Fonterra's supplier shareholders in the last season has leaped to about $480,000.
Despite the highest ever average conversion rate of 67c for the season, revenues increased $881 million to $13.9 billion as a result of record sales and record production.
Milk production lifted 3.2 per cent from 1.21 billion kilograms the previous year to a record 1.25 billion kilograms, said van der Heyden.
"We've ended up having a very good season."
Van der Heyden said Fonterra was sticking with its forecast for the coming season's payout of $5.53, despite speculation by some commentators it could hit $6.60.
FONTERRA
Revenue
2006-07 - $13.9b
2005-06 - $13.0b
Net surplus
2006-07 - $31m
2005-06 - $12m
Payout
2006-07 - $5.6b
2005-06 - $5b
