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Press Releases Westland Lifts its Payout Prediction

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Hokitika-based Westland Milk Products, New Zealand’s second largest dairy co-operative, has lifted its total operating surplus (payout) prediction for the 2016-17 season to range of $5.50 to $5.90 per kilo of milk solids (kgMS).

This is estimated to produce a net return to shareholders (after retained earnings) of $5.30 to $5.70 per kgMS. The co-operative’s previous estimate for the season was a net range (after retained earnings) of $4.55 to $4.95 per kgMS.

Chief Executive Toni Brendish said the lift in payout prediction has been made possible by two factors.

“Firstly,” she said, “global dairy market prices have increased and Westland has been able to take advantage of that.

“Secondly, we have made a number of improvements to the efficiency of our production and quality assurance processes resulting in savings that can be passed on to shareholders.”

Brendish said the global dairy market remained volatile and industry commentators did not have a consensus on where final payout figures were likely to settle.

“The improvements in the market give us sufficient confidence to take a cautiously optimistic approach and raise our payout prediction accordingly.”

Brendish said that Westland would also raise its advance payout rate to shareholders to $4 per kgMS (up from $3.80).

 

ENDS

For further inquiries contact:

Steve Attwood – Communications Manager
DDI:     03 – 943 0580
C:        027 419 1080
E:         steve@conv.co.nz

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