Record $10/kgMS milk price forecast means extra cash for Fonterra farmers
A record $10/kgMS opening forecast milk price for the new season means more money into Fonterra farmers pockets early, says Federated Farmers dairy chair Richard McIntyre.
Independent Waikato-based milk processor Tatua has again left other New Zealand milk processors, including Fonterra, trailing on the milk payout chart.
The co-op has announced a record payout of $10.43/kgMS before retentions for the 2020-21 season. The co-op has retained $1.18/kgMS for reinvestment meaning its farmer shareholders get a cash payout of $9.25/kgMS.
In 2019-20, Tatua paid its shareholders a cash payout of $8.70/kgMS after retaining $1.26 base from earnings of $9.96/kgMS.
Fonterra last month announced a final payout of $7.74; milk price of $7.50 and 20c dividend. Synlait announced an average payout of $7.82/kgMs for last season- made up of a base milk price of $7.55 and incentive payment of 27c.
Tatua chief executive Brendhan Greaney says the lingering uncertainty related to Covid-19 and the ongoing global shipping disruption continued to create challenges through the year.
“However, we acknowledge that many businesses and individuals have faced greater hardships, and that we are fortunate to have been able to continue to operate as we have,” he says.
“We are pleased to report that the business has had a good year, achieving group income of $395 million and earnings available for pay-out of $162 million.
“Our earnings equate to $10.43/kgMS qualifying milksolids, before retentions for reinvestment and taxation. This is an improvement on the previous year earnings of $9.96/kgMS, and is a record for Tatua.”
Greaney explained why Tatua had retained $18m for reinvestment.
“In deciding our payout, we sought to balance the needs of our shareholder’s farming businesses with the requirement for continued investment in the business to support longer-term sustainability, and a level of debt we consider sensible in what remains an uncertain economic and global trade environment.”
Commercial fruit and vegetable growers are being encouraged to cast their votes in the Horticulture New Zealand (HortNZ) board directors' election.
A unique discovery by a Palmerston North science company, Biolumic, looks set to revolutionise the value and potential of ryegrass and the secret is the application of ultraviolet (UV) light.
A New Zealand company is redefining the global collagen game by turning New Zealand sheepskin into a world-class health product.
With further extreme weather on the way, ANZ Bank is encouraging farmers and business owners impacted by the recent extreme weather and flooding to seek support if they need it.
New Zealand must continue to educate Chinese consumers about the unique qualities of its red meat products and how they differ from competitors, says Silver Fern Farms chief executive Dan Boulton.
There are opportunities outside the farmgate for young farmers to further develop their skills, says 2025 Primary Industries Emerging Leader Award winner Bridie Virbickas.
OPINION: It's official, Fieldays 2025 clocked 110,000 visitors over the four days.
OPINION: The Federated Farmers rural advocacy hub at Fieldays has been touted as a great success.