Payout Highlights Fonterra's LacklustrePerformance
Tatua Payout Highlights Fonterra's Lacklustre Performance
The difference in the estimated payout from dairy companies Fonterra and Tatua is totally unacceptable says Dairy Farmers of New Zealand Chairman Kevin Wooding.
Tatua chairman Dr Alan Frampton has told farmers to budget for an expected final payout of between $5.00 and $5.10 a kilo of milk solids. That compares to Fonterra's forecast of $3.60 a kilo and the West Coast company, Westland's, expected payout of $3.90.
"I accept that Fonterra has to sell most of its milk as powder, while Tatua produces small volumes of high value products, but shareholders expected more innovation from the Fonterra merger, said Mr Wooding.
"Farmers send the same product out the gate and both companies are operating in the same economic climate.
"Fonterra must stop playing at Government, concentrate on its core business of processing and selling milk and start delivering a better result to its shareholders."