Thursday, 15 August 2019 08:49

Contracts will be respected

Written by  Sudesh Kissun
Jianqiu Zhang, Yili Group chief executive. Jianqiu Zhang, Yili Group chief executive.

Chinese dairy giant Yili says it will respect all contractual obligations to pay current and former milk suppliers of Westland Milk.

The company, which bought Westland on August 1, says it knows former milk suppliers are owed money for having surrendered shares.

Yili Group chief executive Jianqiu Zhang told Rural News that Yili is “a very responsible company”.

“We will always strictly follow the contract,” he said.

Zhang pointed out that when the global milk price plummeted in 2014, it still paid its Oceania Dairy Ltd suppliers the contract fixed price.

“We did not drop a cent. In the second year a lot of new suppliers signed up because we won their respect and admiration,” he said.

 The farmer group’s spokesman, Pete Williams, said that at the end of the 2018 milking season he ceased supplying Westland and went to Fonterra, surrendering his shares at their nominal price of $1.50/kgMS.

More like this

Yili’s ‘silk road’ under construction

Yili's takeover of Westland, the second-largest dairy enterprise in New Zealand, creates a ‘dairy silk road’ between Asia and NZ, says Yili Group chief executive Jianqiu Zhang.

Win-win for West Coast

Former Westland Milk chairman Pete Morrison says Yili’s new ownership represents a significant milestone for the former co-op and the start of a new era for the dairy industry on the West Coast.

Featured

Southland on the brink

Southland is teetering on the edge of a bad situation, according to DairyNZ’s lead consulting officer in the South Island, Tony Finch.

 

» The RNG Weather Report

» Latest Print Issues Online

The Hound

Dirty water

The Hound understands that Federated Farmers has been cut out of the information loop, for the past year, on the…

Who’s paying?

Your canine crusader noticed a full-page ad recently run in a farming paper calling on meat companies SFF and Alliance…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter

Popular Reads

Drop in payout looms

Dairy farmers are being told to brace for a big drop in milk payout next season.