Westland Milk confirms $4.95 milk payout
Cheif executive expresses cautious optimism.
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Hawke’s Bay
Westland Milk Products has declared an operating surplus equivalent to $4.95 per kilo of milk solids before a 10c retention.
Chief executive Rod Quin reported total group revenue for the financial year 2014-15 down 23% on the previous year, at $639 million.
He says there is room for cautious optimism for an improvement, and therefore Westland has increased its forecast payout for the 2015-16 season of $4.90 to $5.30/kgMS.
The main contributors to Westland’s payout are prices for skim milk powder, casein and butter, with a growing contribution from infant nutrition products.
Mr Quin says Westland is focusing on its value-add growth strategy.
The co-operative’s Dryer 7 and UHT projects will both come on line in the 2015-16 season.
The retentions of 10c/kgMS will support the growth plan.
He also highlighted the contribution from Westland’s colostrum production and from its wholly-owned subsidiary EasiYo.
“I am confident the global oversupply is being consumed.
“However farmers in Europe and the US are yet to find a new level of milk production and farm profitability.
“There are risks that need to be considered but also cautious optimism to balance our views of the market.”
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Chris Hutching
Wed, 30 Sep 2015
Wed, 30 Sep 2015
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Westland Milk confirms $4.95 milk payout
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