23 July 2003
PR143/2003
Tatua Shining Light of the Dairy Industry
"Tatua's payout of $5.60 per kilogram of milksolids is a shining example of the benefits of a low cost structure and
high value niche market products, says Dairy Farmers of New Zealand Chair Kevin Wooding.
"An equivalent payout of $5.60 for Fonterra suppliers would add $160,000 to the bottom line of an average dairy farmer.
"It is an interesting comparison that for $10 million profit Tatua added 10 cents to their shareholders payout while
Fonterra adds 1 cent for $10 million profit. Obviously this is a reflection of different cost structures but highlights
what an innovative company can achieve."
ENDS