Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More

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

 

Grass-fed milk at the heart of Westland-Southern Pastures JV

A growing global demand for free-range, grass-fed milk lies at the heart of an agreement today that will see Southern Pastures LP – New Zealand’s largest dairy farmland fund – become a shareholder of Westland Milk Products – New Zealand’s second largest dairy co-operative.

The agreement, commencing from the 2018-19 season, will add an extra four million kilograms of milk solids to Westland’s milk collection annually, from Southern Pastures’ nine Canterbury dairy farms.

“Westland and Southern Pastures will also conduct a business case investigation with the intention of forming a 50:50 joint venture company,” Westland Chair Pete Morrison said. “The objective will be to process and distribute milk product that will be from free-range, grass-fed cows on farms that meet very high values covering animal welfare, human health, sustainability, the environment and human rights.

“The opportunity to supply free-range, grass-fed milk will not be restricted to the Southern Pastures farms. Any Westland shareholder who can meet the standards required will also be able to supply and take advantage of additional income that results.”

Morrison said that Southern Pastures is an adventurous, innovative and progressive company that shares Westland’s company purpose to provide nourishment made beautifully for generations – producing premium quality, high value, differentiated milk products that can command a premium in the global dairy market while meeting modern expectations around ethical and environmentally sustainable production.

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

Key to the agreement was Westland’s ability to segregate and process milk from different sources.

“That is one of the advantages of the size of our plant,” Morrison said. “We can economically and efficiently produce separate specialty lines with very little impact in terms of cost and time management on how the plant is normally run.”

The agreement will also produce an immediate benefit for Westland as Southern Pastures will bring with it premium New Zealand dairy company Lewis Road Creamery. This effectively creates a significant new customer for the West-Coast based co-operative with Lewis Road purchasing some of the grass-fed milk produced.

Payout review

Morrison said Westland’s Board also reviewed the company’s payout prediction yesterday reducing it to a range of $6.20 - $6.50 per kgMS (previously $6.40 to $6.80), reflecting market conditions, but still competitive compared with other payout predictions in New Zealand.

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Business Headlines | Sci-Tech Headlines

 
GenPro: General Practices Begin Issuing Clause 14 Notices

GenPro has been copied into a rising number of Clause 14 notices issued since the NZNO lodged its Primary Practice Pay Equity Claim against General Practice employers in December 2023.More

SPADA: Screen Industry Unites For Streaming Platform Regulation & Intellectual Property Protections

In an unprecedented international collaboration, representatives of screen producing organisations from around the world have released a joint statement.More

 
 
 
 
 
 
 
 
 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.