Coast farmers claw back

Financially troubled Westland Milk Products says it will pay its farmers a farmgate forecast payment of $6.40 to $6.80 per kilogram of milksolids for the 2017-18 season.

West Coast MP Damien O’Connor said it was ‘‘great news for farmers who have been struggling with low income and their loyalty to the co-operative’’.

The Hokitika-based company, which processes 3.5 per cent of New Zealand’s milk supply, has been battling to retain farmers who were threatening to desert to higher paying processors.

Last year Westland posted a net loss after tax of $14.5 million for the year, while farmers received a low $3.88/kg payout. This year the final payout will be a range of $5.15-$5.25.

Last week Fonterra lifted its price to $6.75, with an earnings per share range of 45c-55c, making the forecast total available payout to farmers in the 2017-2018 season $7.20-$7.30.

O’Connor said he hoped suppliers who were in a position to opt out of supplying to Westland to switch to another processor, would think twice. Besides being good for farmers, the price lift would be good news for the West Coast economy.

Westland chief executive Toni Brendish, who has been in the job 10 months, said the key to Westland’s revival was improving efficiencies. The company has achieved close to $70m in savings and efficiencies since she took over. These savings alone had enabled the board to forecast the more competitive payout for this coming season.

Westland’s new catchphrase is ‘‘Nourishment Made Beautifully for Generations’’, she said.

‘‘This is a purpose that captures the essence of Westland.’’