GDT result a further blow to Westland farmers

GDT result a further blow to Westland farmers

Westland farmers are waiting for the bad news to end after the latest GlobalDairyTrade (GDT) result and Westland’s disappointing announcement yesterday confirming the $5.40 - $5.80 payout for the 2014/15 season, along with the final payout for the 2013/14 season remaining the least competitive at $7.57.

“The announcements are disappointing, with the 13/14 pay-out falling into the lower range forecast and the GDT signalling a possible further decrease for the 14/15 season,” says Renee Rooney, Federated Farmers West Coast Dairy Chair.

“Westland’s payout range was well signalled, so it shouldn’t come as a huge surprise for West Coast dairy farmers, however adding the GDT into the mix adds some uncertainty to the coming season.

“Getting through the next 12 months will be tough for a lot of farmers, especially those who are highly leveraged. It might be worth considering taking the final payout for this season, which is above average, and banking it for next winter.

“If you haven’t already adjusted your budgets, then now is the time, because next year is going to be tight for everyone.

“Whilst preparing for the worst, it’s a matter of keeping the faith.

“Westland are looking to broaden its supply into higher value products, such as the building of a Ultra High Temperature milk processing plant, which will hopefully increase suppliers’ returns by moving away from commodity ingredients.

“The 13 cent remaining payment due on the 20 October will be a lifeline for some, and is the last opportunity to capitalise off this season’s more favourable payout before we enter a gloomier forecasted season.

“Shareholder meetings are set for this month to discuss Westland’s strategy and performance, where we can look to have some input on where to from here. I recommend you all turn up to talk things over.

“In the mean time talk to your bank, accountant and your family, this is a pretty stressful time for everybody, so don’t be shy to talk to your neighbours or get support from the Rural Support Trust. It is important to try and minimise any stresses you have so you can manage your way through the coming season,” concluded Mrs Rooney.

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