October 30, 2014
Westland posts US$647.2 million revenue for 2013-14
Westland Milk Products, New Zealand's second biggest dairy cooperative, has recorded a total group revenue of US$647.2 million for the 2013-14 financial year, according to its annual report.
The figure represents a rise of 46% from the previous year.
The growth was driven by rising milk volumes from shareholders, up 21% at 753 million litres. Another factor is the co-operative's progress towards higher value products, which contribute 14% of Westland's sales volume.
However, Matt O'Regan, Westland's board chairman, acknowledged that the co-operative's final result for the season, with an operating surplus of US$5.90/kilogramme of milk solids, did not meet the strategic goal of providing strong returns to shareholders.
The company, however, have plans to increase its profitability.
O'Regan revealed that a US$79.5 million investment in a larger dryer in Hokitika, New Zealand, had been approved and would be operational in August 2015.
Westland also planned to invest US$31.1 million in an ultra-high temperature processing (UHT) plant at its Rolleston premises, its first venture into retail-ready milk.
The focus on the new plant and products is being supported by an investment in sales and marketing resources, specifically in China, said Westland CEO Rod Quin.
Quin added that the potential in China remains considerable, despite a recent slowdown in that market.
Westland is also expanding its market exposure risk by venturing into other countries such as Indonesia.