Tuesday, 01 October 2019 13:36

Tatua pays $8.50/kgMS for last season’s milk

Written by  Staff Reporters
Tatua achieved record group income of $364 million and earnings of $140 million in 2018-19.  Tatua achieved record group income of $364 million and earnings of $140 million in 2018-19. 

Waikato milk processor Tatua has announced a final payout of $8.50/kgMS for last season, beating all other processors including Fonterra.

The co-op, supplied by 107 shareholder farms, achieved record group income of $364 million and earnings of $140 million in 2018-19. 

Milksolids processed from Tatua suppliers was 14.5 million kgMS, which is our divisor for earnings. This was lower than the prior season, due to extended dry summer conditions across our milk supply area.  

Tatua’s group earnings of $140 million equates to $9.66/kgMS before retentions for reinvestment and taxation. This is an improvement on the previous season earnings of $8.62/kgMS.

“We have confirmed a cash payout to supplying Shareholders of $8.50/kgMS,” says chairman Steve Allen.

Fonterra has announced a final payout of $6.35/kgMS.

In addition, Tatua has retained earnings for reinvestment of $1.16/kgMS, equivalent to $16.8 million before tax. 

Allen says continued growth of its value-add businesses provided improved revenue, and its  bulk ingredient product mix performed well, despite mixed market conditions.  

“In deciding our payout, we have aimed to achieve a balance between the needs of our shareholder’s farming businesses and Tatua’s requirements for reinvesting in our long term environmental, financial and social sustainability. “For the coming year this will include the development of a new engineering support facility and a major investment in wastewater treatment infrastructure. “

Tatua remains cautious regarding management of borrowings; it’s gearing (debt divided by debt plus equity) averaged 32% for the year, which was fractionally lower than the previous year average. Gearing at the end of the financial year was 27%. 

“While we remain optimistic in our outlook for dairy and the season ahead, our optimism is tempered by continuing volatility in the global trade arena. 

“In addition, uncertainty around emerging domestic policies on both climate change and fresh water management, have real potential to undermine investment confidence. 

“Alongside our shareholders, we will nonetheless embrace these challenges constructively.”

More like this

Fonterra’s big break

Former Fonterra chairman Sir Henry van der Heyden believes the co-operative will come out a stronger global player post-COVID-19.

Featured

ANZCO makes a $30m profit

Meat company ANZCO Foods recorded its best-ever revenue of $1.7b and a net profit before tax of $30.6m for the year ended 31 December 2019.

 

M. bovis – we’re making headway

Ministry for Primary Industries chief science adviser, Dr John Roche on the indications New Zealand is winning the fight against Mycoplasma bovis.

Delays ruled out on water reforms

Delaying the introduction of new water reforms was not an option according to the two cabinet Ministers directly involved – Environment Minister David Parker and Agriculture Minister Damien O’Connor.

$700m for freshwater clean up

The Government has announced a $700 million fund to support the primary sector and other groups in meeting new clean water standards.

» The RNG Weather Report

» Latest Print Issues Online

Milking It

Effluent power

Finnish dairy company Valio is on a mission to reduce milk’s carbon footprint to zero by 2035.

What’s in a name?

The man who coined the term ‘Gypsy Day’ is slightly miffed that a term he introduced to New Zealand’s farming…

» Connect with Dairy News

» eNewsletter

Subscribe to our weekly newsletter