Paul McGilvary says so long to Tatua

Paul McGilvary feels slightly bittersweet in stepping down after eight years as Tatua Co-operative Dairy Company’s chief executive.

Tatua’s 380 staff and 118 suppliers are not just a team or some faceless corporate body. These people are virtually family for the 59-year-old.

‘‘It’s almost like getting up in the morning amongst a family and whatever differences you have you’ll always be family and I have felt that support every day from staff and shareholders.’’

After spending most of his 50s heading the co-operative based at Tatuanui between Morrinsville and Te Aroha, he feels there are other things he wants to achieve during his working life.

Tatua has a good platform for further growth and now is the right time to step down. He has given Tatua’s board six months to find a replacement. His replacement should be announced in December.

The co-operative had some outstanding financial performances over the past eight years, he says. According to its 2015 annual report, Tatua generated a revenue of $286 million for the 12-month period to 31 July 31, 2015. Its earnings before payout, taxation and retention were $121.1 million, which equated to $7.73 a kilogram of milksolids.

Founded in 1914, Tatua Cooperative Dairy Company is the oldest independent dairy company in NZ and exports more than 94 per cent of its products to 60 countries worldwide and has sales offices in three countries, Japan, US and China.

Tatua’s forecast for the 2015-16 season is $6/kgMS but yet to be confirmed until later this month.

Prior to Tatua, McGilvary spent six years as CEO of HortResearch ( now Plant and Food).

McGilvary had huge challenges when he started at HortResearch in 2002. The crown research institute was struggling financially and had low staff morale.

He turned around the organisation’s financial position by renewing relationships with industry partners and undertook extensive work to improve its workplace culture.

Tatua is a smaller organisation than HortResearch with 180 staff at the time, compared to more than 500 at HortResearch.

‘‘But after meeting with the board I realised my job was done at HortResearch and I also realised the job at Tatua excited me.’’