ANZ Warns of Milk Price Risks as New Dairy Season Begins
The new dairy season is kicking off with plenty of risks to the forecast farmgate price, both upside and downside, says ANZ agricultural economist Matt Dilly.
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.”
Tayla Steele is in her fourth year of a Bachelor of Veterinary Science at Massey University in Palmerston North.
The Ministry for Primary Industries (MPI) says no new cases of H5 bird flu have been detected following a case found earlier this week.
Two months after unveiling a major upgrade to its beef product, Halter says its farmers are on track for major production gains and additional grass growth.
New Zealanders are being urged to be alert following a confirmed positive case of H5 bird flu this week.
With a third of NZ dairy farmers still running outdated refrigerants, the country's largest farm refrigeration company says the opportunity for quick, meaningful emissions gains has never been clearer.
OPINION: Farmers are being put on notice by the Green Party.
OPINION: City and regional councils have been put on notice - stop using extreme climate forecasting scenarios that can drive…
OPINION: The Green Party’s rivers and oceans policy may have a new name but nothing else has changed.