The co-op has announced a record payout of $10.43/kgMS before retentions for the 2020-21 season. The co-op has retained $1.18/kgMS for reinvestment meaning its farmer shareholders get a cash payout of $9.25/kgMS.
In 2019-20, Tatua paid its shareholders a cash payout of $8.70/kgMS after retaining $1.26 base from earnings of $9.96/kgMS.
Fonterra last month announced a final payout of $7.74; milk price of $7.50 and 20c dividend. Synlait announced an average payout of $7.82/kgMs for last season- made up of a base milk price of $7.55 and incentive payment of 27c.
Tatua chief executive Brendhan Greaney says the lingering uncertainty related to Covid-19 and the ongoing global shipping disruption continued to create challenges through the year.
“We are pleased to report that the business has had a good year, achieving group income of $395 million and earnings available for pay-out of $162 million.
“Our earnings equate to $10.43/kgMS qualifying milksolids, before retentions for reinvestment and taxation. This is an improvement on the previous year earnings of $9.96/kgMS, and is a record for Tatua.”
Greaney explained why Tatua had retained $18m for reinvestment.
“In deciding our payout, we sought to balance the needs of our shareholder’s farming businesses with the requirement for continued investment in the business to support longer-term sustainability, and a level of debt we consider sensible in what remains an uncertain economic and global trade environment.”
