Listen Now: 
August 12, 2015
Parininihi ki Waitotara weathers dairy downturn
Waatea Team
Posted On August 12, 2015
The chair of PKW Incorporation and Farms LP Hinerangi Raumati says its just a matter of the dairy industry weathering the storm of the downturn in the dairy payout.
She says the trust which is Fonterra's largest supplier in the Taranaki, producing in excess of 3 millon kgs of milk solids last year, is facing very challenging times but they are no different from the challenges facing the whole industry with Fonterra's payout down from 5.35 to 3.85 per kg of milk solids.
"We've been in downcycles before. So there is also a flipside there is an upcycle. It's really about wondering I guess and trying to get clarity on whether or not we are at the bottom of that cycle at this point and time. I think there is probably commentators out there that are saying that there is still a little bit more downside to come" she says.
Hinerangi Raumati says the price fall represents around $4.5 million loss of revenue for PKW which means they are deferring a number of capital expenditure projects and cutting other non-essential expenditure.
She says PKW is fortunate in having other sources of income other than dairy including crayfish and perpetual leases which will help it through the tough times.
And she welcomes Fonterra's offer to give suppliers interest free loans amounting to 50 cent a kg of milk solids.
Copyright © 2015, UMA Broadcasting Ltd: www.waateanews.com
RELATED NEWS
