Fonterra Slashes Dividend, Earnings Forecast On High Dairy Input Costs
date:Dec 11, 2013
s in New Zealand, Spierings said.

That is why the remaining 30 per cent of milk is being converted to cheese and casein which are currently generating lower returns.

To increase its powder processing capabilities, Fonterra said it would invest NZ$235 million into a new milk powder plant, which would enable its North island Pahiatua plant to process an additional 2.4 million litres of milk each day.

The abnormal circumstances around the mismatch between milk powder and cheese prices had led to
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