Tatua Offers 'Stunning' Milk Price30 September 2013
NEW ZEALAND – Dairy farmers in the Waikato region are rejoicing after dairy cooperative, Tatua, issued a cash payout of $7.40 per kilogram of milk solids (kg/MS).
The North Island based company has shocked the industry and its tight group of 109 shareholder farmers after it announced the ‘stunning’ price amid tensions around a high kiwi dollar.
This is how David Fish, a Tatua shareholder described the after retentions payout which beats Fonterra’s $6.16 kg/MS announcement from last week.
According to Mr Fish, the recent success at Tatua is down to less focus on milk powder and a greater focus on specialised food ingredients.
He said that any ‘dark clouds’ in the industry currently rest over a high dollar and the high value of milk powder.
“An after retention payout of $7.40 kg/MS leaves every other dairy processor trailing in our wake,” explained Mr Fish.
“When we use the word retention, Tatua is retaining $1.17 kg/MS to grow the cooperative as a business. This means the amount available for payout to Tatua shareholders was a mighty $8.57 kg/MS."
TheCattleSite News Desk