Fonterra is reporting a record annual profit of $1.6 billion with the co-ops profit increasing by $994m in the year to the end of July, from $583m the previous year – up 170% and driven by strong margins in its cheese and protein portfolios. The co-op’s normalised profit after tax was $1.329b, up $738m compared with the same time last year – the market was expecting $1.2b. The co-op also announced a final dividend of 40c so a full year dividend of 50 cents per share, compared with last year’s total of 20c. Fonterra kept its farmgate milk price forecast at a midpoint of $6.75/kg and set its milk price for the season just finished at $8.22 per kgMS, up 2c from a previously advised mid-point. CEO Miles Hurrell says they are watching market dynamics closely and there are indications demand for New Zealand milk powders will start to return from early 2024. Federated Farmers Dairy Chair Richard McIntyre joins Mark Leishman on Round Up.