Fonterra Slashes Dividend, Earnings Forecast On High Dairy Input Costs
date:Dec 11, 2013
rices have raised input costs for the company and Fonterra's milk powder plants have been struggling to process more milk into powder.

Fonterra had been using the maximum possible volume of raw milk to process milk powders, but the remainder was being processed into cheese which earns 26 percent less, said chief executive Theo Spierings.

We have not been able to lift powder production above the current 70 percent level as we are limited by the nature of Fonterra's existing production facilitie
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