Record result lifts Tatua payout
Tatua shareholders will receive a payout of $8.10 per kilogram of milk solids after the dairy cooperative posted record annual revenue for the 2017-18 year.
The board of Waikato-based Tatua confirmed operating revenue of $357 million and earnings of $127m for the season at its annual meeting last week.
The pre-tax payout of $8.62 per kg/ms was an improvement on the previous season’s $7.60.
Tatua’s record result follows the release of Fonterra’s figures, when the dairy giant posted its first financial loss of $196m and a cash payout of $6.79 per kg/ms.
Westland Milk Products has also released its results for the 2017-18 financial year, posting a $3.3m pre-tax profit and a payout of $6.07 per kg/ms of milk solids after a 5-cent retention.
Tatua chairman Steve Allen said Tatua had good, longstanding relationships with both Fonterra and Westland and there wasn’t a lot of comfort to be taken from the challenges they were facing.
‘‘There have been times when we’ve had our back to the wall and it’s not much fun,’’ he said.
‘‘You have to be pretty resilient and very considerate about the decisions you make to get back on track.
‘‘From our perspective we wish both Fonterra and Westland the best because we want them both to be strong.’’
Allen said the co-op had deliberately chosen to have a different business model, which had been carefully thought out before the dairy industry was deregulated.