Fonterra raises dividend to cushion impact of lower NZ milk price

Fonterra Cooperative Group, the world’s largest dairy exporter, has paid New Zealand farmers less for milk this year but managed to soften the blow by increasing dividends even as profits fell.

Net income fell 28% to NZ$1.13 billion ($716 million) in the year ended July 31, the Auckland-based company said Wednesday. Despite this, the dairy group was able to increase its dividend to 55 cents a share from 50 cents a year earlier, providing a special dividend of 15 cents.