Sharechat Logo

Westland Milk cuts 2018 milk payout forecast to range of $6.10-$6.40/kgMS citing storm impact

Wednesday 7th March 2018

Text too small?

Westland Milk Products, New Zealand's third-largest dairy company, has cut its forecast milk payout for the 2017-2018 season citing the disruption on the West Coast caused by ex-Cyclone Fehi.

Westland Milk's board met last week and considered its options in the wake of the storm and "the bottom line financial impact due to interruption in production," chair Peter Morrison said in a statement. "The costs to Westland were significant, equivalent to some 8-10 cents per kilo of milk solids on payout. As a result, we were obliged to approve a new payout forecast range of $6.10 to $6.40."

It marks the second reduction for the dairy cooperative, which had forecast a range of $6.20 to $6.50/kgMS in January and a range of $6.40 to $6.80/kgMS last August. The latest forecast means Westland may yet match Fonterra Cooperative Group in its milk payment this season. Fonterra is forecasting a payout of $6.40/kgMS.

Westland returned to profit last year, with earnings of $1.5 million in the 12 months ended July 31, from a loss of $10.3 million a year earlier. 

The company has refreshed its governance and leadership team in the wake of criticism about its lagging returns to farmers. In October, shareholders approved a plan to shrink its board to eight from 11 including three independents chosen for their competence.

(BusinessDesk)

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar eases as US-China trade war, Brexit saga drag on
OceanaGold less confident in regulatory regime
INFINZ says RBNZ bank capital proposals lack analysis and scrutiny
Spark scolded for misleading customers on broadband price hike
Zespri annual profit jumps 77% on higher kiwifruit sales, increased licensing
Freightways says express package growth slowed in 2H, may flow into FY2020
BUDGET 2019: NZ debt target to be more flexible from 2022
Argosy annual profit climbs 36% on revaluation gains, pays slightly bigger dividend
NZ-owned banks says RBNZ capital proposals will make it harder to compete
Sanford earnings hit by vessel impact from crew death

IRG See IRG research reports