Milk price certainty
Westland Milk has reaffirmed its commitment to pay farmer suppliers 10c above Fonterra farm gate milk price for the following two seasons.
Westland Milk Products says its 2.5% drop in peak milk processing has meant more capacity available for the cooperative and its shareholders, enabling more focus on added-value product.
Chief executive Rod Quin today confirmed that Westland hit peak mid November. In total, Westland processed 3.84 million litres of milk by peak flow, compared with 3.93 L the season prior.
"This slight drop, combined with our new dryer seven coming into commercial production meant we had greater capacity to put more of the peak milk flow into higher value products," says Quin.
"In previous years peak milk has all been channelled into bulk milk powders to maintain throughput, which give a lower return compared to products such as infant formula.
Based on the current demand from infant formula customers, we expect the end of season results will show that we have sold more value-add product at a higher profit margin."
Quin notes that the trend for reduced production at Westland and across the New Zealand dairy industry as a whole is expected to continue and global markets should not be banking on New Zealand lifting or even maintaining its production this season.
The predicted El Nino weather pattern in the coming months is also likely to keep production down, says Quin. Canterbury farms are expected to face dryer conditions and possible irrigation restrictions, while West Coast Farms are predicted to experience a wetter and colder season – both tending to result in less milk coming off-farm.
The country’s 4200 commercial fruit and vegetable growers will vote from May 14 on a new HortNZ levy.
Meat processor Alliance Group is asking farmer shareholders to inject more capital in order to remain a 100% co-operative.
A vet is calling for all animals to be vaccinated against a new strain of leptospirosis (lepto) discovered on New Zealand dairy farms in recent years.
Dairy
Rural banker Rabobank is partnering with Food Rescue Kitchen on a new TV series which airs this weekend that aims to shine a light on the real and growing issues of food waste, food poverty and social isolation in New Zealand.
Telco infrastructure provider Chorus says that it believes all Kiwis – particularly those in the rural areas – need access to high-speed, reliable broadband.
OPINION: Talking about plant-based food: “Chicken-free chicken” start-up Sunfed has had its valuation slashed to zero by major investor Blackbird…
OPINION: Synlait's financial woes won’t be going away anytime soon.