Westland increases milk price forecast
But the cooperative's chairman says the strong kiwi dollar continues to be a challenge.
Hot Topic
SCIENCE
New Zealand’s second biggest dairy cooperative has increased its milk price forecast by 20c, bringing the average cash payout for farmers to $4.55-4.95k/kgMS.
The company has also announced its forecast average operating surplus has increased to $4.75-5.15/kgMS
Westland Milk chairman Matt O’Regan says the result reflects a recent lift in international dairy prices for the range of products Westland produces.
He says the positive August GlobalDairyTrade (GDT) auction results were also a factor.
Average dairy prices were up 12.7%, with whole milk powder (WMP) jumping an impressive 18.9% at the last auction. That followed a 9.9% increase at the previous auction earlier in the month.
The futures market is also picking next week’s auction to show an increase in dairy prices.
Mr O’Regan says the advance rate, payable September 20, 2016, has been approved at $3.80/kgMS.
“In line with the revised forecast payout, the board has also revised the 2016/17 season advance rate schedule and extended the $3.80 per kgMS rate for one month to include November milk supplied, payable December 20, 2016.”
Mr O’Regan says despite the increase in the forecast, the strong New Zealand dollar continues to be a challenge, along with the short-term oversupply of international markets.
Earlier this month Fonterra lifted its farmgate milk price forecast 50c to $4.75/kgMS for this season.
Chairman John Wilson voiced similar concerns about the high dollar, saying the kiwi/ US cross rate “continues to offset some of the dairy price gains.”
Westland Milk Products’ new chief executive, Toni Brendish, will start with the company on Monday, September 5, taking over from managing director Brent Taylor who has filled the gap from the previous chief executive Rod Quin.
Click the hamburger symbol top right of our homepage to access the Rich List 2016 and other sections.
Jason Walls
Wed, 31 Aug 2016
Wed, 31 Aug 2016
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Westland increases milk price forecast
61244