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


Westland Milk cuts 2018 milk payout forecast

Westland Milk cuts 2018 milk payout forecast to range of $6.10-$6.40/kgMS citing storm impact

By Jonathan Underhill

March 7 (BusinessDesk) - Westland Milk Products, New Zealand's third-largest dairy company, has cut its forecast milk payout for the 2017-2018 season citing the disruption on the West Coast caused by ex-Cyclone Fehi.

Westland Milk's board met last week and considered its options in the wake of the storm and "the bottom line financial impact due to interruption in production," chair Peter Morrison said in a statement. "The costs to Westland were significant, equivalent to some 8-10 cents per kilo of milk solids on payout. As a result, we were obliged to approve a new payout forecast range of $6.10 to $6.40."

It marks the second reduction for the dairy cooperative, which had forecast a range of $6.20 to $6.50/kgMS in January and a range of $6.40 to $6.80/kgMS last August. The latest forecast means Westland may yet match Fonterra Cooperative Group in its milk payment this season. Fonterra is forecasting a payout of $6.40/kgMS.

Westland returned to profit last year, with earnings of $1.5 million in the 12 months ended July 31, from a loss of $10.3 million a year earlier.

The company has refreshed its governance and leadership team in the wake of criticism about its lagging returns to farmers. In October, shareholders approved a plan to shrink its board to eight from 11 including three independents chosen for their competence.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Discussion Paper: Govt To Act On Unfair Commercial Practices

“I’ve heard about traders who have used aggressive tactics to sell products to vulnerable consumers, and businesses that were powerless to stop suppliers varying the terms of their contract, including price.” More>>


'Considering Options' On Tip Top Ownership: Fonterra Drops Forecast Milk Price

Fonterra Co-operative Group Limited today revised its 2018/19 forecast Farmgate Milk Price range from $6.25-$6.50 per kgMS to $6.00-$6.30 per kgMS and shared an update on its first quarter business performance. More>>


Science: Legendary Telescope Being Brought Back To Life

One of the world’s most famous Victorian telescopes will be restored and available for public viewing in Takapō after spending five decades in storage... The Brashear Telescope was used in the late 1800s by Percival Lowell for his studies of Mars. More>>

Employment Amendment Bill Passes: CTU Hails Victory For Working People

"This law allows Kiwis to access their basic rights at work, to make more informed choices about their employment, and help each other get a fairer deal." More>>