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


Westland Milk Products delivers more economic cheer

28 September 2011

Westland Milk Products delivers more economic cheer

The dairy cooperative, Westland Milk Products, has delivered welcome cheer to the West Coast and the wider economy, with its second highest payout off revenues of over half a billion dollars.

“It has been a hell of year for the West Coast and this payout, the second best in our cooperative’s history, provides some welcome good news,” says Richard Reynolds, Federated Farmers West Coast Dairy chairperson and a Barrytown dairy farmer.

“This means a cooperative that is 100 percent owned by West Coasters is now generating more than half a billion dollars in revenue. That’s more, for instance, than the combined export revenue from beverages, spirits and pharmaceuticals.

“A $7.58 kilogram of milksolids (kg/MS) payout will put $380 million into the West Coast economy. This could have been higher if we had matched Fonterra’s payout of $7.90.

“While Fonterra recorded a 19 percent lift in revenue, Westland Milk Products has lifted revenues by 21 percent to $525 million. We may not have Fonterra’s scale but we are growing a rounded business.

“Westland is moving away from being a commodity milk power producer and moving into higher value products that will close the payout difference between the two cooperatives.

“An example of the change in Westland’s direction yesterday, was our cooperative’s announcement of a new paediatric nutritional manufacturing plant in Hokitika The fact our cooperative can do this is all down to a sound retentions policy and a well thought out strategic direction.

“The importance of dairy is underscored by the direct and indirect jobs related to it. Nowadays, one out of seven jobs in Westland District and one out of thirteen in Buller, relate to dairy. Everyone will benefit from a great year for the cooperative.

“I expect farmers will focus on reducing the mortgage and improving their farms profitability as well as investing in the future of their farm through environmental enhancement.

“We’re not farming for capital gain, we’re farming for profitability,” Mr Reynolds concluded.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Fuels Rushing In: Govt "Ready To Act" On Petrol Market Report

The Government will now take the Commerce Commission’s recommendations to Cabinet...
• A more transparent wholesale pricing regime • Greater contractual freedoms and fairer terms • Introducing an enforceable industry code of conduct • Improve transparency of premium grade fuel pricing... More>>


Reserve Bank Capital Review Decision: Increased Bank Capital Requirements

Governor Adrian Orr said the decisions to increase capital requirements are about making the banking system safer for all New Zealanders, and will ensure bank owners have a meaningful stake in their businesses. More>>


Aerospace: Christchurch Plan To Be NZ's Testbed

Christchurch aims to be at the centre of New Zealand’s burgeoning aerospace sector by 2025, according to the city’s aerospace strategic plan. More>>


EPA: Spill Sees Abatement Notice Served For Tamarind Taranaki

The notice was issued after a “sheen” on the sea surface was reported to regulators on Thursday 21 November, approximately 400 metres from the FPSO Umuroa. A survey commissioned by Tamarind has subsequently detected damage to the flowline connecting the Umuroa to the Tui 2H well. More>>

Taskforce Report: Changes Recommended For Winter Grazing

A Taskforce has made 11 recommendations to improve animal welfare in intensive winter grazing farm systems, the Minister of Agriculture Damien O’Connor confirmed today. More>>