Cost cutting allows Westland to lift forecast payout

The Hokitika-based co-op is forecasting a net payout range (after retentions) of $6.40 to $6.80/kgMS for 2017-18 season – a substantial improvement on the two previous seasons.

New chairman Pete Morrison and chief executive Toni Brendish are leading a review of Westland’s operations after two years of low payouts.

Brendish says a key to Westland’s revival has been the focus on improving efficiencies in the organisation – the company has achieved close to $70million in savings and efficiencies in the last ten months.

These savings alone, she says, had enabled the board to forecast the more competitive payout for this coming season.

Supporting the extensive cross company revision is a clear strategy and purpose, Brendish says.

“A great company has a clear understanding of what its purpose is and it articulates that throughout its company structure, with all staff having a clear understanding of how their role helps achieve that purpose.”

Westland says its new purpose is ‘Nourishment Made Beautifully for Generations’.

“This is a purpose that captures the essence of Westland,” Brendish says.

“It draws upon the strength we derive from our environment, our land, and the generations of people who have farmed it, and uses that to establish our point of difference with our customers.

“We make nourishment, and we make it beautifully. That encompasses values such as ethics, trust, authenticity, quality, safety, capability and flexibility.

“And, most importantly, it links the generations of our past to the generations of our future. Westland would not be where it is today without the pioneering spirit of its early farming families. It is those original strengths and values that will take us forward in a market where, increasingly, consumers what to know the story of their product and the people who made it.”