Westland Milk Products Records $55.9M Profit
Source: The DairyNews
Westland Milk Products has announced a record profit of $55.9 million for the fiscal year 2023, attributing its success to robust sales of premium dairy items such as butter. This figure represents a significant increase from the $38.9 million profit reported in 2022.
Richard Wyeth, CEO of Westland, emphasized that this substantial financial achievement enables the company to offer competitive terms to its farmers. Recently, Westland committed to paying farmers a 10-cent premium above Fonterra’s Farm Gate Milk Price for the 2024-25 and 2025-26 seasons, enhancing payment terms initiated under the original Scheme of Arrangement established when the company was acquired by Chinese dairy giant Yili in 2019.
Wyeth outlined the company's strategic focus on long-term profitability, highlighting plans to channel more milk solids into higher-value products in 2024. He underscored the significance of ongoing improvement efforts, affirming Westland's commitment to delivering sustainable growth year-on-year.
A notable investment in a new butter plant in Hokitika last year facilitated Westland's expansion in the US market. Westgold butter is now available in over 3000 grocery retail outlets across the US, including Walmart stores. Additionally, Westland produces Kirkland Signature New Zealand Grass-Fed Butter for Costco, distributed across numerous Costco outlets in the US, Korea, and Taiwan.
Despite challenges posed by a decline in global dairy prices, Westland reported a revenue of $1.065 billion, slightly surpassing the previous year's result. Wyeth attributed this resilience to the support of Yili, one of the world's largest dairy companies, enabling strategic investments in infrastructure to maximize revenue from high-margin products.
Looking ahead, Westland and Yili are jointly investing $70 million in a new lactoferrin plant at the Hokitika facility. This investment aims to diversify revenue streams and reduce dependence on traditional high-margin sources such as infant formula for China, amid softening import demand in this sector.
The new lactoferrin plant is scheduled for completion in the final quarter of this year, with production expected to commence in quarter three.
Wyeth outlined the company's strategic focus on long-term profitability, highlighting plans to channel more milk solids into higher-value products in 2024. He underscored the significance of ongoing improvement efforts, affirming Westland's commitment to delivering sustainable growth year-on-year.
A notable investment in a new butter plant in Hokitika last year facilitated Westland's expansion in the US market. Westgold butter is now available in over 3000 grocery retail outlets across the US, including Walmart stores. Additionally, Westland produces Kirkland Signature New Zealand Grass-Fed Butter for Costco, distributed across numerous Costco outlets in the US, Korea, and Taiwan.
Despite challenges posed by a decline in global dairy prices, Westland reported a revenue of $1.065 billion, slightly surpassing the previous year's result. Wyeth attributed this resilience to the support of Yili, one of the world's largest dairy companies, enabling strategic investments in infrastructure to maximize revenue from high-margin products.
Looking ahead, Westland and Yili are jointly investing $70 million in a new lactoferrin plant at the Hokitika facility. This investment aims to diversify revenue streams and reduce dependence on traditional high-margin sources such as infant formula for China, amid softening import demand in this sector.
The new lactoferrin plant is scheduled for completion in the final quarter of this year, with production expected to commence in quarter three.
