Monday, 01 October 2012 11:06

Tatua trumps Fonterra

Written by 

Waikato dairy processor Tatua has announced a final payout of $7.50/kgMS for 2011-12, easily beating Fonterra.

The co-op has also retained 54c/kgMS to strengthen its balance sheet. Fonterra last week announced a final payout of $6.40/kgMS, made up of a milk price of $6.08/kgMS and a dividend payout of 32c/share. Fonterra retained 10c/share from its shareholders.

Tatua chairman Steve Allen says the 2011-12 season has been another positive one for it and its 109 suppliers.

"Demand for our products has remained firm throughout the year and our product mix returns were favourable," he says.

Milk supply from Tatua Suppliers was 13.2 million kilograms of milksolids, an increase of 9.5% from the previous year. The company's gearing ratio (of debt divided by debt plus equity) increased in line with expectations to 34%.

However, the co-op says foreign exchange management continues to be a challenge with the New Zealand dollar remaining elevated throughout the year.

"Our foreign exchange hedging policies have mitigated the impact of this to a considerable extent," he says.

More like this

Battle for milk

OPINION: Fonterra may be on the verge of selling its consumer business in New Zealand, but the co-operative is not keen on giving any ground to its competitors in the country.

Featured

Mountain Warrior's words of wisdom

The Mountain Warrior Shane Cameron is coming back to his roots as key note speaker at the East Coast Farming Expo Property Brokers Evening Muster in February.

Editorial: RMA reforms uproar

OPINION: The euphoria over the Government’s two new bills to replace the broken Resource Management Act is over.

National

Machinery & Products

» Latest Print Issues Online

The Hound

Time and place

OPINION: First on the scene after the recent devastating storms in parts of the North Island were emergency services and selfless…

Where is Luxon?

OPINION: Why can't Christopher Luxon stand up to Winston Peters over the latter’s high-profile attack on the proposed Indian FTA?

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter