Tatua Cooperative lifts full-year operating revenue by 16%
Tatua Cooperative Dairy Co, the Tatuanui-based dairy company, reported a 16 percent lift in full-year operating revenue as global milk prices improve.
The company's board said its group operating revenue was $335 million while earnings were $114 million in the year to July 31. This equates to group earnings of $7.60 per kilogram of milk solids, before retentions and taxation.
Tatua generated group revenue of $289.3 million in the prior year, according to its annual report. Earnings before payout, taxation, and retentions was $99.8 million, which equated to $6.41 per kilogram of milk solids
The board also confirmed a final cash payout to shareholders of $7.10 per kilogram of milk solids, and in addition, have declared a pre-tax retention for reinvestment of 50 cents per kilogram of milk solids to underpin Tatua's strategic priorities.
It noted that milk solids processed from supplying shareholders was 15 million kilograms, down from 15.6 million in the prior season "reflecting the less favorable farming conditions experienced through the spring." Late last week ASB Bank senior rural economist Nathan Penny noted that wet weather was beginning to stall dairy production across New Zealand. The latest production data showed that August production was 1.5 percent lower than August 2016, according to ASB.
Tatua also said its balance sheet was strong with a gearing ratio of 35 percent. The dairy company has 114 shareholder farms and around 37,000 dairy cows. It processes more than 200 million litres of milk a year.