Thursday, 15 August 2019 08:49

Contracts will be respected

Written by  Sudesh Kissun
Jianqiu Zhang, Yili Group chief executive. Jianqiu Zhang, Yili Group chief executive.

Chinese dairy giant Yili says it will respect all contractual obligations to pay current and former milk suppliers of Westland Milk.

The company, which bought Westland on August 1, says it knows former milk suppliers are owed money for having surrendered shares.

Yili Group chief executive Jianqiu Zhang told Rural News that Yili is “a very responsible company”.

“We will always strictly follow the contract,” he said.

Zhang pointed out that when the global milk price plummeted in 2014, it still paid its Oceania Dairy Ltd suppliers the contract fixed price.

“We did not drop a cent. In the second year a lot of new suppliers signed up because we won their respect and admiration,” he said.

 The farmer group’s spokesman, Pete Williams, said that at the end of the 2018 milking season he ceased supplying Westland and went to Fonterra, surrendering his shares at their nominal price of $1.50/kgMS.

More like this

Yili’s ‘silk road’ under construction

Yili's takeover of Westland, the second-largest dairy enterprise in New Zealand, creates a ‘dairy silk road’ between Asia and NZ, says Yili Group chief executive Jianqiu Zhang.

Win-win for West Coast

Former Westland Milk chairman Pete Morrison says Yili’s new ownership represents a significant milestone for the former co-op and the start of a new era for the dairy industry on the West Coast.

Featured

Feds call for pause on regulations

The Government has been warned that it needs to back off some of its signalled regulations if it wants farming to help the NZ economy recover from the COVID-19 hit.

 

Tough time on farm for many

Under pressure from drought and COVID-19, Woodville dairy farmer Ben Allomes says: ‘we can’t shut our doors and just walk away’.

» The RNG Weather Report

» Latest Print Issues Online

The Hound

Deafening silence

Your old mate reckons it’s incredible how people’s attitudes have changed since the COVID-19 crisis hit us.

Celibate times

A mate of the Hound’s reckons the COVID lockdown must be getting serious when we are being told not to…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter

Popular Reads

Rules driving farmers out

New farming rules around sustainability are driving elderly farmers out of the dairy industry, says agri-economist Phil Journeaux.