Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Westland Milk Products announces 2014-15 pay-out prediction

Westland Milk Products announces 2014-15 pay-out prediction


New Zealand’s second largest dairy co-operative Westland Milk Products has announced a pay-out prediction of $6 to $6.40 per kilogram of milk solids (kgMS) before retentions for the 2014-15 season just commenced.

The company has also kept its pay-out prediction for the 2013-14 season at $7.50 - $7.70 per kgMS before retentions.

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.”

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

NZ's Space Programme: Rocket Lab Makes It To Space (But Not Orbit)

Electron lifted-off at 16:20 NZST from Rocket Lab Launch Complex 1 on the Mahia Peninsula in New Zealand. It was the first orbital-class rocket launched from from a private launch site in the world. More>>

ALSO:

Earlier:

Budget: Irrigate (Good Times, Come On!)

Additional grant funding of $26.7 million over the next three years plus a capital boost of $63 million towards irrigation investments in Budget 2017 will deliver economic and environmental benefits through better use of water... More>>

ALSO:

Silver Fern Farms: Proposal To Close Fairton Sheepmeat Plant

Silver Fern Farms has advised its people of the proposal to permanently close the site, and has discussed potential transfer options to its other sites in the region as part of the consultation process...
More>>

ALSO:

MPI: Myrtle Rust Appears In Taranaki

The nursery in Waitara (just north of New Plymouth) reported suspected myrtle rust symptoms on young plants to the Ministry’s 0800 number yesterday (Tuesday). More>>

ALSO: