Tatua's just too-good
OPINION: Earlier this month, small Waikato milk processor Tatua reminded the country that it’s still number one when it comes to paying farmers for their milk.
The co-op has announced a record a cash payout of $12.30/kgMS for milk supplied last season. In the previous season, Tatua paid a then-record $10.50/kgMS to farmer shareholders. In comparison, Fonterra, Miraka and Synlait’s final milk price for last season was $10.16/kgMS. Two of these processors also paid either dividends or milk-quality payments to suppliers – Fonterra paying a full year dividend of 57/share and Miraka paying on average 17c/kgMS for milk quality.
Tatua recorded its best financial result last year, with group income reaching a record $579 million, translating to earnings of $13.85/kgMS. The co-op retained $1.55/kgMS for reinvestment.
In a joint statement Tatua chair Stephen Allen and chief executive Brendhan Greaney say they are pleased to report another year of strong financial performance and strategic investment, underpinned by the commitment of people, the support of shareholders and customers, and the strength of the co-operative model.
The bulk ingredient revenue was second highest to date, only trailing the 2022/23 financial year, when caseinate and WPC prices reached unprecedented heights, before quickly returning to more typical levels.
Revenue from our Tatua Foods, Nutritionals, and Flavours businesses was once again the highest ever, continuing the momentum of the last several years, and reflecting the co-op’s focus on developing specialised and premium products.
“We completed our single largest investment to date, increasing our cream based retail and foodservice product manufacturing capacity. The project was completed well below the $85 million budget, ahead of timeline, and with an exceptional health and safety record.
“This investment was a direct response to strong customer demand and will allow us to further prioritise value-add production over commodity products. The plant will be fully commissioned early in the new financial year, positioning us well for continued growth in our important global markets.”
Tatua’s year-end gearing (debt divided by debt plus equity) increased to 31% from the prior year 23%, reflecting the funding impact of a new plant.
In addition to the sound financial result, good progress was made in many areas across the business, making for another very productive year, they say.
“Tatua remains co-operative to the core, and it is through this shared commitment that we have achieved another rewarding result.
“We look forward with optimism to the year ahead and we remain incredibly appreciative of the support we have received from our customers, staff, and shareholders.”
