Westland hits $1b revenue
Hokitika-based Westland Milk Products is bracing for another good year after hitting $1 billion in revenue for the first time in 2022.
WESTLAND HAS announced a pay-out prediction of $6 to $6.40/kgMS before retentions for the 2014-15 season just started.
The company has also kept its pay-out prediction for the 2013-14 season at $7.50 - $7.70/kgMS.
Chief executive Rod Quin says Westland's predicted pay-out is in line with the predictions by other New Zealand companies, all of which are experiencing the same international market conditions.
"The decline in pay-out for 2014-15 is due to lower international dairy prices and the relatively high New Zealand dollar," Quin says. "The market has continued to decline as customers limit their purchases due to higher inventories in their supply chains, and growth in milk and dairy product supply from Europe and the USA.
"What we have to consider is whether we are at the bottom of the price cycle, and here the signs are slightly more encouraging. There are indications that customers are buying more than prior months to refill their supply chains."
Quin says that some industry commentators have speculated that the weakening New Zealand dollar might off-set the impact of lowered dairy prices and therefore benefit pay-outs, but he cautions that, to date, the decline in the dollar has been very small and the currency remains over-valued.
"Westland's response to this situation is to continue its strategy to grow its capacity to produce higher value nutritional products such as infant formula," Quin says.
"Our traditional reliance on bulk dairy commodities makes us more vulnerable to the cyclical swings of the international dairy market. Our recently announced investment in a $102 million nutritionals dryer at Hokitika will give us the capacity to shift more of our production to this end of the market where profits are higher and opportunities to lift pay-outs are better."
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.
Waikato herd health veterinarian Katrina Roberts is the 2024 Fonterra Dairy Woman of the Year.
Horticulture NZ chief executive Nadine Tunley will step down in August.