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 is preparing to conduct a review of staff roles, a move that will likely to result in redundancies according to chief executive Rod Quin.
The review is part of an overall programme to gain efficiencies and reduce costs to help preserve the best possible return to shareholders during the current global dairy price downturn.
Quin says, he is not going to speculate on how many, or what positions might be affected, until the review is complete, affected staff are consulted, and given an opportunity to provide feedback on any proposed roles under review. The review will occur over two rounds, with the first round scheduled to start this month (September 2015) and the second in February 2016.
Quin says that Westland is also continuing its programme of efficiency gains and a cost saving drive. Some $15 million was trimmed off the company’s budget in the last financial year, but Quin says there will be no let up and that the ‘microscope’ would be on all costs, as Westland responds to the volatile international dairy market.
“The international marketplace for dairy is in a new world era,” Quin says, “with the removal of the European Union milk quotas and softer demand from key markets. The resulting reduction in prices is flowing directly into lower shareholder payouts, which are, and are forecast to be, below the cost of owning and operating a dairy farm in New Zealand.
“A reduction in costs is required to realign our cost structure with the new reality of lower international prices and what is now a much more competitive New Zealand dairy industry.”
Farmer-led charity, Meat the Need is calling for donations to enable it to supply more meals to families in need.
Weaker pricing and demand from China continue to impact New Zealand red meat export earnings.
Fonterra has cemented its position as the country’s number one cheesemaker by picking up nine NZ Champion of Cheese trophies this year.
New Zealand dairy processors are welcoming the Government’s commitment to continuing to push for Canada to honour its trade commitments.
An educational programme, set up by Beef + Land New Zealand, to connect farmers virtually with primary and intermediate school students has reported the successful completion of its second year.
Horticulture NZ chief executive Nadine Tunley will step down in August.
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