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

 


Westland forecast follows Fonterra’s suit

30 July 2014

Westland forecast follows Fonterra’s suit

The dairy cooperative, Westland Milk Products, has charted a similar course to Fonterra’s benchmark forecast released yesterday for the current 2014/15 season, by announcing a pay-out forecast of $6 to $6.40 per kilogram of Milksolids (kg/MS).

“Given Fonterra’s announcement yesterday, farmer-shareholders on the Coast appreciate this early heads-up from our co-op,” says Renee Rooney, Federated Farme0rs Dairy chairperson.

“Even better is firming confirmation of the 2013/14 final payout in the $7.50 - $7.70 kg/MS range. Of course we’ve got retentions on top but it is set to be a good payout and Westland’s supplier communication has been pretty good.

“All across the country we are going to see dairy farmers tightening their belts, having an immediate affect on the economic performance of our rural communities. That will ultimately ‘trickle up’ to our larger urban centres.

“It is safe to say that dairy farmers will be sitting on their wallets focussing only on what we need. Ironically, it is good to see the dollar finally starting to correct as that ought to help the co-op as an exporter.

“Westland pumps about $450 million into the West Coast economy and over $100 million into Canterbury. Some 2.3 percent of all jobs on the Coast and the top of the South Island hinge on what we do. Each of our cows generates $3,599 for these regions too.

“The ground has been prepped for a $102 million new multi purpose nutritionals dryer. That ought to be ready by next August and shows how confident the co-op is in the future.

“What’s happening is a blip but we need to suck it up and get on with farming. Welcome to the life of an exporter.

“The trend and the future remains very positive. We know our big brother Fonterra is investing heavily into new kit so it is not all doom and gloom. As long as you sensibly farm for the medium term you won’t lose your shirt.

“For those dairy farmers who are highly leveraged they will feel this. If you haven’t already, you should be talking to your bank, accountant and farm consultant.

“Prioritise what you really need to be productive and compliant, which includes a Feds membership. Already this year, we’ve saved farms on the Coast several thousand dollars by way of earthquake building compliance,” concluded Mrs Rooney.


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Media: Julian Wilcox Leaves Māori TV

Māori Television has confirmed the resignation of Head of News and Production Julian Wilcox. Mr Maxwell acknowledged Mr Wilcox’s significant contribution to Māori Television since joining the organisation in 2004. More>>

ALSO:

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news