Wednesday, 30 November 2016 11:17

Westland lifts forecast

Written by 
Chief executive Toni Brendish. Chief executive Toni Brendish.

Hokitika-based Westland Milk Products, New Zealand’s second largest dairy co-operative, has lifted its payout prediction for the 2016-17 season to a net range (after retentions) of $5.30 to $5.70/kgMS.

The cooperative’s previous estimate for the season was a net range of $4.55 to $4.95/kgMS.

Chief executive Toni Brendish says the lift in payout prediction has been made possible by two factors.

“Firstly,” she says, “global dairy market prices have increased and Westland has been able to take advantage of that.

“Secondly, we have made a number of improvements to the efficiency of our production and quality assurance processes resulting in savings that can be passed on to shareholders.”

Brendish says the global dairy market remained volatile and industry commentators did not have a consensus on where final payout figures were likely to settle.

“The improvements in the market give us sufficient confidence to take a cautiously optimistic approach and raise our payout prediction accordingly.”

Brendish says that Westland would also raise its advance payout rate to shareholders to $4/kgMS (up from $3.80).

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