Westland payout on the way up
by Anonymous Author
Westland Milk Products says it has reached a milestone in its efforts to offer shareholders a sustainable and industry competitive payout.
Westland, which has a major processing facility in Rolleston’s Izone business park is forecasting a net payout range (after retentions) of $6.40 to $6.80 for 2017-18 season. Westland chief executive Toni Brendish said that’s a substantial improvement on the two previous seasons. “Key to Westland’s revival has been the focus on improving efficiencies in the organisation which has resulted in the company achieving close to $70 million in savings and efficiencies in the last 10 months.
“These savings alone have enabled the Board to forecast the more competitive payout for this coming season.”
Ms Brendish said supporting the extensive cross company revision is the development of a clear strategy and purpose.
“A great company has a clear understanding of what its purpose is and it articulates that throughout its company structure, with all staff having a clear understanding of how their role helps achieve that purpose.”
She said Westland’s new purpose is ‘Nourishment Made Beautifully for Generations’.
“This is a purpose that captures the essence of Westland. It draws upon the strength we derive from our environment, our land, and the generations of people who have farmed it, and uses that to establish our point of difference with our customers.
“We make nourishment, and we make it beautifully. That encompasses values such as ethics, trust, authenticity, quality, safety, capability and flexibility.
“And, most importantly, it links the generations of our past to the generations of our future.
“Westland would not be where it is today without the pioneering spirit of its early farming families. It is those original strengths and values that will take us forward in a market where, increasingly, consumers want to know the story of their product and the people who made it.”
Ms Brendish said Westland’s size and facilities give it the capability to be more flexible.
“It can segregate its processing systems to offer customers specialty products where there is higher value and an available market niche.
“There are additional costs in becoming a flexible, niche market producer but by offering such a service, we can command a price premium that will not only outweigh the additional costs but deliver our shareholders a higher, more sustainable return in what will always be a highly volatile market.”