Ah Tatua, You've Done It Again!
Waikato milk processor Tatua has again declared a record milk payout to farmer shareholders, leaving other processors in the dust.
Two years ago, morale among New Zealand's small group of dairy goat farmers was low with several challenging seasons forcing some out of business.
However, a new board and leadership team installed two years ago at Dairy Goat Co-operative (DGC) are turning things around.
At its annual general meeting last week, DGC reported impressive results and is focusing on growing milk supply to meet significant unmet demand, both from existing shareholder suppliers and potential suppliers.
For the year ending May 31, 2026, revenue was $178.5 million, up from $170.5m the previous year. Gross profit rose to $41.6m, up from $36m the previous year.
Chief executive Alastair Hulbert told Rural News that while some farmers are still doing it tough, there’s “a degree of optimism back in the industry”.
Hulbert says farmers are again starting to invest in the milk shed and breeding more kids to boost herd numbers.
There’s also good news for DGC farmer shareholders. A record payout of $14.56/kg goat milk solids (GMS) was distributed last season, up from $11.68/kgGMS the previous season.
For the current season, DGC has underwritten a rate of $15/kgGMS across 100% of share entitlement milk. The guaranteed milk price is paid upfront.
Hulbert says this gives suppliers greater income certainty as the co-operative works to increase milk supply.
The focus is on getting current farmer suppliers to fully utilise their barns and miking sheds while breeding more kids for milking next season.
However, Hulbert says they will still need milk from new suppliers to meet demand.
DGC needs more milk to meet a growing global demand for goat milk formula and ingredients.
He says the co-op’s ‘Formula for Success’ strategy has key priorities: a staged re-entry into China, commercialising its GIraFFE research programme, supporting milk supply growth and assessing opportunities in the US.
DGC is also pursuing contract manufacturing to improve use of its existing plant in Hamilton.
Hulbert believes DGC is ready for its next stage of growth.
“There is still work to do to restore consistent profitability, but higher farmer returns, a much stronger balance sheet and demand for products provide a solid base for the next phase of growth.”
DGC’s balance sheet has also improved. Debt has been slashed from $39m to $4.6m, supported by operating cash flow and the sale of whole milk powder inventory, reducing financial risk and providing a stronger base for growth.
However, the co-operative remained loss-making after tax, recording a $1.2 million loss, but generated strong operating cash flow and materially strengthened its balance sheet.
Milk supply this season is forecast to be 3.9 million kgGMS.
Hulbert says that year-to-date supply of 1.3mkgGMS is slightly ahead of budget, with September collections reaching 424 metric tonnes of GMS against a budget of 406 metric tonnes.
