Milk processors match or exceed Fonterra’s record $10/kgMS opening forecast for 2025-26 season
Milk processors are either matching or beating Fonterra's record $10/kgMS opening forecast milk price as the 2025-26 season gets underway.
Waikato milk processor Tatua has topped the 2017-18 milk payout stakes.
The co-op last week announced a final payout of $8.10/kgMS to farmer suppliers, after retaining 52c/kgMS.
It finishes well ahead of the rest of the major processors; Fonterra suppliers will get a final payout of $6.79/kgMS including a 10c dividend.
Maori-owned Miraka will pay $6.80/kgMS and Synlait $6.78/kgMS, respectively; both payouts include 13c in incentive payments.
Open Country Dairy, the second-largest processor, will pay out on average $6.71/kgMS to its suppliers.
Struggling Westland Milk, Hokitika, holds the wooden spoon after announcing a final payout of $6.07/kgMS (after retaining 5c).
Tatua chairman Stephen Allen says the co-op had a good year, achieving record group revenues of $357 million and earnings of $127m.
“Our focus on growing our value-add businesses has contributed significant additional revenue and our bulk ingredient product mix has served us well,” he says.
Allen says in deciding the payout Tatua has sought to balance between supporting its shareholders and its need to reinvest for its future.
“Our gearing (debt divided by debt plus equity) at year-end lifted slightly from 35% last year to 37%, but will normalise back to around 35% or less as we move further into the current season.
While Tatua shareholders rejoice, shareholders of Westland Milk endure the lowest payout of all.
Westland Milk chairman Pete Morrison says the co-op achieved $3.3m gross profit last season on the back of the 5c retention.
Morrison says the Westland board acknowledges its milk payout isn’t competitive and is focussed on achieving parity in future.
Holstein Friesian excellence was front and centre at the 2025 Holstein Friesian NZ (HFNZ) Awards, held recently in Invercargill.
The work Fonterra has done with Ballance Agri-Nutrients Ltd, LIC and Ravensdown to save farmers time through better data connections has been recognised with a national award.
This past week has seen another round of negotiations between India and New Zealand to produce a free trade agreement (FTA) between the two countries.
Cautiously optimistic is how DairyNZ's regional manager for the lower North Island, Mark Laurence describes the mood of farmers in his patch.
The Infrastructure Commission has endorsed a plan by Chorus to expand fibre broadband to 95% of New Zealand much to the delight of rural women.
Questions are being raised about just how good the state of the dairy industry is - especially given that the average farmgate payout for the coming season is set to exceed $10/kgMS.
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