What you need to know about the Fonterra financial result

There was encouraging news for dairy farmers today, with a solid annual result for dairy giant Fonterra.

It reported a net profit of $1.1 billion and milk payout prices are also looking healthy.

So what does this news mean for the wider economy? And indeed, why should we care so much about the fortunes of dairy farmers?

Julia Jones is an independent advisor in the ag industry, and she joins Emile Donovan.