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

 


Westland revises payout prediction for 2014-15 season

Westland revises payout prediction for 2014-15 season


New Zealand’s second largest dairy co-operative Westland Milk Products has revised its payout prediction for the 2014-15 season to $5.40 - $5.80 per kilogram of milk solids (kgMS) before retentions, down from $6.00 - $6.40 announced in July.

Westland Chief Executive Rod Quin said the revised payout prediction is a response to the conditions that all New Zealand dairy companies are experiencing at the moment.

“While the season is only just underway, we have always maintained a monthly revision process to provide shareholders with the most up to date forecast possible,” Quin said. “The reduction is driven by the falls in prices across the globe and the continued high value of the New Zealand dollar.”

While last week’s dairy auction saw an overall price drop of just 0.6%, Quin noted that the skim milk powder price – which represents a substantial proportion of Westland’s production – dropped 12%. He said there was still lacklustre demand from China and stock levels in distributor and customer warehouses was reportedly high.

“Higher prices last season caused a growth in milk supply growth in Europe, the USA and New Zealand, giving customers more options.”

Quin said the reduced payout will cause farmers to review their budgets. He said Westland’s board and management were very conscious of the stress this will put on some suppliers.

“We’ll be monitoring the situation and working closely with shareholders to help ensure they have the resources and tools to manage their way through this,” he said.

“Westland will also continue its strategy to grow its capacity to produce higher value nutritional products such as infant formula. Our traditional reliance on bulk dairy commodities such as skim milk 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

 

Facades And Parapets: $3 Million Fund To Help Make Wellington’s Buildings Safer

Wellington’s Mayor Justin Lester welcomes today’s announcement from the Government of a $3 million fund to assist Wellington building owners to secure unreinforced masonry on their buildings and says it will go a long way to keeping people safe in future earthquakes. More>>

ALSO:

Real Estate: Housing Prices Head South In Most Of NZ

Housing became more affordable for first home buyers in many parts of the country including Auckland last month, as falling prices more than offset rising mortgage interest rates. More>>

ALSO:

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:

NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news