New Zealand dairy co-op Tatua has hailed “a strong year” for the 12 months to 31 July, with record shareholder milk collections and continued growth across its specialised product portfolio.
The co-op, based near Morrinsville, Waikato, North Island, also highlighted the successful commissioning of Foods II, the largest capital investment in its history.
The co-op says international trading conditions were mixed during the year.
“Although market pricing was broadly supportive,” it added, “performance varied by product and region, with some customers affected by economic uncertainty, changing trade patterns and geopolitical disruption.
“Tatua’s diversified range of products, markets and customer relationships helped moderate these impacts.”
The co-op said its business activities resulted in earnings of NZ$13.93 per kilo of shareholder supplied milksolids. Of this, $1.51 per kilo of milksolids will be used to support the co-op’s future growth and resilience, resulting in a cash payout to shareholders of $12.42 per kilo of milksolids.
Early in the year, Tatua completed and commissioned Foods II, its largest capital project. The cream-processing and UHT manufacturing site, was commissioned as the co-op looks to double its cream-based consumer and food service products, and was “delivered safely, ahead of schedule and under budget”.
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The co-op says its specialised Nutritionals and Foods & Flavours businesses achieved record revenue levels, building on “long-term investment in product development, technical expertise and close customer partnerships”.
The Ingredients business, which is more closely linked to commodity dairy markets, also made a solid contribution to overall earnings, Tatua added.
During the year a number of projects were advanced to support ongoing business performance, it said, including work across manufacturing infrastructure, site reliability, environmental initiatives, business systems, and people capability.
“Tatua enters the new financial year with a positive outlook,” the co-op added. “Additional capacity from Foods II is expected to assist in meeting demand in selected specialised product areas, while the co-operative continues to assess growth opportunities carefully.
“The board and management remain focused on maintaining a sound balance between current shareholder returns, ongoing reinvestment, and the financial strength required to support Tatua’s longer-term plans.”
