$8 final milk price likely
An $8/kgMS farm gate milk price is still on the cards with less than six weeks left to run this season.
Waikato milk processor Tatua has set another record for milk payout.
The co-op has just announced a whopping final payout of $11.30/kgMS for milk supplied in the 2021-22 season.
The Morrinsville-based processor’s group income reached $444 million, with $186m earnings available for payout. This equates to $12.65/kgMS: after retaining $1.35/kgMS, Tatua is paying shareholders $11.30.
The record payout eclipses final payouts announced by Fonterra ($9.50/kgMS) and Synlait ($9.59/kgMS) last month.
Last year, Tatua’s earnings topped $10.43 and farmer suppliers received $9.25/kgMS.
In a statement, Tatua chairman Stephen Allen says, despite ongoing Covid-19 related disruptions and shipping challenges, the business had another good year.
Allen says achieving milk supply from Tatua’s supplying shareholders was impacted by an extended period of dry weather during the autumn months.
This resulted in 14.71 million kgMS collected, 6% behind the previous season.
Allen says, in deciding the payout, the company was “very conscious of the sharp increases in on-farm costs being experienced by our shareholders, as well as the requirement for continued investment in the business and maintaining balance sheet resilience, in what remains an uncertain economic and global trade environment”.
Tatua’s gearing (debt divided by debt plus equity) averaged 21% for the year, but was slightly higher at year end, reflecting increased inventory holdings at balance date.
“In addition to achieving record income and earnings, good progress has been made in many areas of the business, including a number of significant capital projects and business improvement initiatives that together have once again made for a very complete year.
“Our teams in New Zealand and in our off-shore subsidiaries have continued to demonstrate their commitment and dedication to the business and this is reflected in all that has been achieved.
“We thank our customers and all those who partnered with us during the past year and now look forward to another productive year ahead.”
Weaker pricing and demand from China continue to impact New Zealand red meat export earnings.
Fonterra has cemented its position as the country’s number one cheesemaker by picking up nine NZ Champion of Cheese trophies this year.
New Zealand dairy processors are welcoming the Government’s commitment to continuing to push for Canada to honour its trade commitments.
An educational programme, set up by Beef + Land New Zealand, to connect farmers virtually with primary and intermediate school students has reported the successful completion of its second year.
The Food and Agriculture Organisation of the United Nations (FAO) has welcomed a resolution adopted by the United Nations (UN) General Assembly to declare 2026 International Year of the Woman Farmer.
Horticulture NZ chief executive Nadine Tunley will step down in August.
OPINION: Canterbury milk processor Synlait is showing no sign of bouncing back from its financial doldrums.
OPINION: It seems every bugger in this country can get an award these days.