PGW revises earnings guidance as farmer spending drops
Rural trader PGG Wrightson has revised its operating earnings guidance, saying trading conditions have deteriorated since the last market update in February.
Goat farmers supplying milk to the Dairy Goat Cooperative (DGC) were paid $18.50/kgMS last year.
Speaking at the annual meeting last month, chairman Campbell Storey reported a year of strong revenue.
This grew from $177 million in 2015-16 to $193m in 2016-17; sales grew in existing and developing export markets.
“Farmer payout remained positive at $18.50/kgMS,” he said.
During the financial year DGC gained accreditation to the international FSSC22000 food safety systems certification standard.
Farmer-shareholders voted to appoint Mark Dewdney the third independent director on the DGC board. He recently retired as chief executive of PGG Wrightson, having previously worked for Fonterra and LIC.
DGC was set up in 1984 to develop, manufacture and market overseas its own-brand goat milk nutritional powders for infants and children.
It sources goat milk from its shareholder suppliers in Northland, Waikato and Taranaki.
At its Hamilton base it owns and operates all its core manufacturing processes, enabling tightly controlled production of high quality milk formula. It has at least 200 staff there.
DGC products are sold in at least 20 countries.
Rural trader PGG Wrightson has revised its operating earnings guidance, saying trading conditions have deteriorated since the last market update in February.
It's been a bumper season for maize and other supplements in the eastern Bay of Plenty.
Leading farmers from around New Zealand connected to share environmental stories and inspiration and build relationships at the Dairy Environment Leaders (DEL) national forum in Wellington last month.
AgriZeroNZ, a joint venture fast-tracking emissions reduction tools for farmers, is pouring $5 million in a biotech company to develop a low emissions farm pasture with increased productivity gains.
Fonterra is teaming up with wealth app provider Sharesies to make it easier for its farmer shareholders to trade co-op shares among themselves.
Te Awamutu dairy farmers Doug, Penny, Josh and Bayley Storey have planted more than 25,000 native trees on the family farm, adding to a generations-old native forest.