Tuesday, 02 October 2018 08:55

Tatua tops – again

Written by  Sudesh Kissun
Tatua has topped the 2017-18 milk payout stakes. Tatua has topped the 2017-18 milk payout stakes.

Waikato milk processor Tatua has topped the 2017-18 milk payout stakes.

The co-op last week announced a final payout of $8.10/kgMS to farmer suppliers, after retaining 52c/kgMS.

It finishes well ahead of the rest of the major processors; Fonterra suppliers will get a final payout of $6.79/kgMS including a 10c dividend.

Maori-owned Miraka will pay $6.80/kgMS and Synlait $6.78/kgMS, respectively; both payouts include 13c in incentive payments.

Open Country Dairy, the second-largest processor, will pay out on average $6.71/kgMS to its suppliers.

Struggling Westland Milk, Hokitika, holds the wooden spoon after announcing a final payout of $6.07/kgMS (after retaining 5c).

Tatua chairman Stephen Allen says the co-op had a good year, achieving record group revenues of $357 million and earnings of $127m.

“Our focus on growing our value-add businesses has contributed significant additional revenue and our bulk ingredient product mix has served us well,” he says.

Allen says in deciding the payout Tatua has sought to balance between supporting its shareholders and its need to reinvest for its future. 

“Our gearing (debt divided by debt plus equity) at year-end lifted slightly from 35% last year to 37%, but will normalise back to around 35% or less as we move further into the current season.

While Tatua shareholders rejoice, shareholders of Westland Milk endure the lowest payout of all.

Westland Milk chairman Pete Morrison says the co-op achieved $3.3m gross profit last season on the back of the 5c retention.

Morrison says the Westland board acknowledges its milk payout isn’t competitive and is focussed on achieving parity in future.

More like this

Featured

 

Tough time on farm for many

Under pressure from drought and COVID-19, Woodville dairy farmer Ben Allomes says: ‘we can’t shut our doors and just walk away’.

» The RNG Weather Report

» Latest Print Issues Online

The Hound

Deafening silence

Your old mate reckons it’s incredible how people’s attitudes have changed since the COVID-19 crisis hit us.

Celibate times

A mate of the Hound’s reckons the COVID lockdown must be getting serious when we are being told not to…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter

Popular Reads

Rules driving farmers out

New farming rules around sustainability are driving elderly farmers out of the dairy industry, says agri-economist Phil Journeaux.