Milking longer with maize silage
This season's dry conditions have made one thing clear: not having enough feed on hand can bring your season to an early close.
WESTLAND MILK has confirmed its 2012-13 operating surplus is $6.34/kgMS, with a retention of 30c, a 7% increase on the initial season opening budget.
Chief executive Rod Quin says this is a satisfying result given the tough farming and trading conditions during the 2012-13 season. The 30c/kgMS retention will support the company's strategic growth plan while the net pay-out to shareholders remains very competitive.
In spite of the impact of a major flood event in South Westland then one of the worst droughts in living memory for most of the Coast, milk volumes from shareholders were up 5.7% at 621 million litres, and milk purchased from other dairy processors contributed a further 68 million litres. Turnover remained steady at $535 million, with a high New Zealand dollar dampening the high market prices in the second half of the season.
"These results are a testament to the resilience and resourcefulness of our shareholders and staff," Quin says. "There is a huge focus on productivity and quality which runs through the whole company from our farmer shareholders and suppliers to the staff on the factory floor and the sales team that is maintaining and growing our position with key customers."
Westland ended the financial year with a slightly lower equity to assets ratio than last year at 49%. This reflects the cooperative's recent investments, particularly in the development of new plant for the manufacture of specialist nutritional products such as baby formula.
"The results confirm Westland's strategic decision to move from being a manufacturer of quality ingredients, to that of being a supplier of value-added nutritional products, which return higher prices for the company and better results for shareholders," Quin says. "Our financial position at the end of the 2012-13 season means we are well placed to continue this strategy; the new nutritionals plant will be operating to full capacity in the 2013-14 season and we are investigating options for further development."
Quin says that with milk volumes for the 2013-14 season - while early in the season - at 10% above budget, and with pay-out predictions at a near record high, Westland's shareholders have their sights set firmly on a successful year.
Other financial results include:
• Westland's average USD conversion rate was just under 80c versus a spot rate of 82c contributing a benefit of $14 million.
• The total return for a colostrum supplier for the 2012-13 season was an average of 3c/kgMS collected. Over Westland's total milk solids of 57 million kilograms this is an average return of 1.7c/kgMS.
• EasiYo (a wholly owned subsidiary of Westland) had an extremely positive year lifting revenue and net profit for an overall contribution of 10.5c to shareholders' pay-out.
• The most recent 2013-14 season forecast is $7.60 - $8/kgMS.
Recent rain has offered respite for some from the ongoing drought.
New Zealand's TBfree programme has made great progress in reducing the impact of the disease on livestock herds, but there’s still a long way to go, according to Beef+Lamb NZ.
With much of the North Island experiencing drought this summer and climate change projected to bring drier and hotter conditions, securing New Zealand’s freshwater resilience is vital, according to state-owned GNS Science.
OPINION: Otago farmer and NZ First MP Mark Patterson is humble about the role that he’s played in mandating government agencies to use wool wherever possible in new and refurbished buildings.
For Wonky Box co-founder Angus Simms, the decision to open the service to those in rural areas is a personal one.
The golden age of orcharding in West Auckland was recently celebrated at the launch of a book which tells the story of its rise, then retreat in the face of industry change and urban expansion.
OPINION: Should Greenpeace be stripped of their charitable status? Farmers say yes.
OPINION: After years of financial turmoil, Canterbury milk processor Synlait is now back in business.