Westland Milk Products has followed in Fonterra’s footsteps by announcing an increase to its forecast milk payout, up to $7.60-8.00 per kilo of milk solids this season – and it’s all thanks to the wet start to Winter.
The country’s second biggest co-op, Westland has a turnover of around $600 million, and CEO Rod Quin says they’ve benefited from good winter growth from day one of the new season.
“The mild winter means we have come into spring with cows in good condition and plenty of grass which means our farmers are well set up for a productive season.
“While it’s early days yet, there is real promise that this will continue.“
Westland says international prices for dairy commodities have also contributed to the forecast rise, along with the company’s expansion into added value products offshore.
The co-operative expects its new production plant in Hokitika to be working at capacity this season, which has also contributed to the lift.
-Drew Chappell, for Country TV and Weatherwatch