Photo: Getty ImagesFonterra Cooperative Group has raised its forecast payout to farmers on rising Asian demand but has canned its interim dividend due to the increased cost. The dairy giant now expects to pay $6.30-6.60 per kilogram of milk solids in the current season, up from its December forecast of $6-6.30/kgMS. Fonterra has also scaled back its milk collection forecast by 20 million kg to 1,530 million kgMS, which is still 2% more than last season. Nor will it pay an interim dividend, which outside investors in the Fonterra Shareholders' Fund are exposed to. Fonterra's board will decide on whether to pay a final dividend and is reviewing its dividend policy as part of its wider strategic review.

Source: Otago Daily Times February 27, 2019 21:56 UTC