Sharechat Logo

Westland Milk says more job cuts on the cards

Wednesday 1st February 2017

Text too small?

Westland Milk Products plans to lay off staff as the country's second-biggest dairy cooperative strips out costs that haven't been recouped by the recent recovery in global dairy prices. 

The Hokitika-based milk processor won't say how deeply it will cut staff numbers or which units are affected until a review is completed and workers informed by the end of February. Westland's salary bill rose to $55.4 million in the 2016 financial year from $50.6 million a year earlier, with the number of staff earning more than $100,000 rising to 108 from 85. Westland currently employs 550 people, with another 107 at EasiYo and 17 at Westland Shanghai. 

"Current payout predictions, while higher than for the last two seasons, are still not where our shareholders need them to be and, for some, will still not be sustainable," chief executive Toni Brendish said in a statement. "Our current structure, including staff roles, is not set up in the best way to deliver the results we want to achieve."

In late 2015, Westland signalled it would need to lay off staff to deal with the slump in dairy prices. 

Westland farmer shareholders received an average payout of $3.88 per kilogram of milk solids in the 2016 year, which chairman Matt O'Regan said was due to the company's high cost structure to support the value-added strategy it operates. The milk processor is forecasting a payout of $5.30-to-$5.70/kgMS for the 2017 year. 

Several hours before the release, director Sven Koops resigned from the board "for personal reasons". 

BusinessDesk.co.nz

  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 shares up, Ryman and A2 gain while Fonterra, Infratil fall
NZ dollar unchanged in local trading as markets watch US developments
Robertson's rocket for Treasury over child poverty modelling error
Green Cross community head Simon Lipscombe leaves to head Compass NZ food service group
Labour signals slow track for most contentious labour law reforms
New spray dryer planned at Waikato Innovation Park as sheep milk ramps up
Euro Corp to defend fair trading charges over steel mesh standards
Fonterra criticises Beingmate after 'extremely disappointing' earnings downgrade
Augusta lines up third property for industrial property fund
Blis cuts annual earnings guidance as impact of tough first half lingers

IRG See IRG research reports