Tatua sets new record with $11.30/kgMS 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.”