Maui Milk Raises Sheep-Farmer Payout to $17.18/kg MS
Maui Sheep Milk, a New Zealand processor, has lifted its average payment to suppliers to $17.18 per kilogram of milk solids. Chief executive Malcolm Edward said the change reflected farm economics and was intended to give producers greater confidence while the company expands its supply network.
Feed costs have risen sharply for sheep dairy farms. The price of maize grain used in in-shed feeding has increased from about $250 per tonne in 2020 to $600, according to the company. Production costs now range from $12 to $15 per kilogram of milk solids, depending on the efficiency of individual farms.
Maui has also revised its payment system for its eight contracted suppliers. Under the previous arrangement, farms close to the processing facility in Waikato effectively shared freight costs with more distant properties. The new structure removes that cross-subsidy and permits high-producing Waikato farms to receive payments up to 10% higher.
The revised terms are intended to support reinvestment by suppliers and give Maui greater flexibility in adding farms outside the Waikato area. The company is looking for new North Island suppliers before the 2027–28 season, with particular attention to Hawke’s Bay and Wairarapa. Two farms in those regions have already joined the supply network.
Demand in China has increased for premium sheep-milk nutrition products. The main categories identified by Maui are products for children aged three and above, functional nutrition for adults and wellness products for older consumers. The company is seeking additional farm supply to meet overseas volume commitments.
Maui’s production programme includes Southern Cross Dairy Sheep, a genetics-breeding venture based at Waikino Station. Its breeding work selects sheep suited to pasture-based systems, including animals with greater rumen capacity, stronger hooves and higher milk-solids production. Commercial ewes currently average 54kg of milk solids per season, while the top nucleus flocks produce more than 81kg per lactation under optimised nutritional management.
Raw milk is chilled in vats on farms and taken to facilities in Waikato. There it is processed into nutritional powders and other dairy ingredients. The company’s sheep-milk supply chain therefore combines farm collection, breeding and regional processing for products sold in Asian export markets.
