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Tatua Dairy Company site.

Tatua has announced a record income of $537 million in delivering a cash payout to shareholders of $12.30 per kilogram of milksolids.

The independent company based at Tatuanui, near Morrinsville, retained a slice, amounting to $43 million before tax, for reinvestment in the business.

It said the earning equated to $15.20 per kilogram of shareholder supplied milksolids, a record. The 2021-22 figure was $12.65.

The company continues to maintain a significant margin above the payout levels announced by Fonterra.

“In addition to achieving record income and earnings, good progress has been made in many areas of the business, including a number of significant capital projects and business improvement initiatives, that together, have once again made for a very complete year,” a statement signed off by chairman Stephen Allen and chief executive Brendhan Greaney.

The Tatua board set the payout figure at an October 4 meeting which reviewed the 2022-23 year.

“In deciding our payout, we have sought to balance the needs of our shareholders farming businesses, in an environment where costs have increased well beyond mainstream inflation, and our need to continue to invest in the business while also maintaining balance sheet strength,” the company statement read.

From June to the end of May the company processed 14.85 million kilograms of milksolids supplied by its 101 shareholder farms

Wet conditions and lack of sunshine early in the season severely impacted supply. Milk received over the peak supply period was 6.6 per cent down on the previous season – but the same wet conditions helped boost supply later in the season, to finish one per cent higher.