It is only a star on the horizon for the bulk of dairy farmers — but this is what they may aspire to. How about a payout of $11.30kg/MS?
That’s what the 101 farmer-shareholders in the Waikato specialist-product-co-op Tatua will receive — a record — for the 2021-22 year. Tatua will still retain close to $20m to reinvest in the business.
Tatua has reported group earnings equivalent to $12.65kg before retentions for the year ended July 31. This was up on the previous year’s earnings of $10.43kg and was achieved in spite of Covid-related disruption and shipping issues.
The company said group income was $444m ($395m the previous year), with earnings available for payout of $186m. Retentions were equivalent to $1.35/kg.
The 108-year-old company traditionally leads milk payout in the NZ dairy industry. Fonterra’s final cash payout for 2021-22 was $9.50kg/MS.
Tatua chairman Stephen Allen and CEO Brendhan Greaney said that in deciding the payout, the company was very conscious of sharp increases in farmer costs, as well as the need for continued reinvestment in the business. Tatua had a number of significant capital projects and business improvement initiatives under way during the year.
Milk supply was impacted by a long dry spell in the autumn months, resulting in a 6% fall in collection to 14.7mkg/MS on the previous year.
The company had anticipated a good financial year, telling its farmers that demand and pricing for its dairy ingredients were favourable and it was well contracted. It said it was focussed on the development and commercialisation of specialist product opportunities.