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 promising better things for the 2018-19 season, while conceding that this season’s payout will be disappointing.
Westland, New Zealand’s second-biggest dairy co-operative, predicts its payout to shareholder suppliers will be in the range $6.75 to $7.20/kgMS for 2018-19.
The figure is in line with payout predictions of $7.00 from Fonterra and Synlait.
WMP chairman Pete Morrison says the shareholders will welcome the prediction; they are anticipating a payout in the range of $6.10 to $6.30 for 2017-18.
“This (17/18 payout) is a disappointing result – as it is not as competitive as we had originally told shareholders we would be,” Morrison said, “but a number of one-off factors contributed to this.”
They included the impact of former-tropical cyclone Fehi, estimated to have cost at least 10c/kgMS. Lyttelton Port strikes added to the cyclone’s disruption and meant Westland incurred higher freight costs. And quality issues, while now improved, were more extensive than at first thought and took longer than expected to resolve.
“We are now seeing improved sales and a better sales outlook; there is a much improved performance by our infant and toddler nutrition (ITN) and UHT plants; and consumer butter has been, and we believe will continue to be, a star performer.”
Westland’s decision to enter the NZ retail consumer butter market with its Westgold brand has also paid off, Morrison said.
He expects butter to continue to be a good export earner.
“We see robust demand for butter in all sectors growing further in the coming year, with grass-fed growth showing even further potential. Westland is in a great position to take advantage of the growing demand for grass-fed dairy products.”
To make butter, Westland had to find markets for its skim milk powder and that is also looking promising, he said.
Animal rights organization, SAFE says the government needs to maintain the ban on live exports.
New findings from not-for-profit food supply and distribution organization, the New Zealand Food Network (NZFN) have revealed a 42% increase in demand for food support in 2023 compared to 2022.
New data released by LIC and DairyNZ shows New Zealand dairy farmers have achieved the highest six week in-calf rate and lowest notin- calf rate on record.
Christchurch City Council and the Canterbury Agricultural and Pastoral Association (CAPA) have signed an agreement which will open more of Canterbury Agricultural Park for public use while helping to provide long-term certainty for the A&P Show.
This year’s Fieldays will feature a Rural Advocacy Hub - bringing together various rural organisations who are advocating for farmers and championing their interests as one team, under one roof, for the first time.
ASB head of rural banking Aidan Gent is encouraging farmers to speak to their banks when they are struggling.