This includes a final step up in milk price for the 2014-15 season of 6 cents/kg for butterfat and 12c/kg for protein.
The payment is retrospective and applies to milk supplied from July 1, 2014. The payment will be made with June 2015 proceeds during July 2015 to current milk suppliers.
This increase goes against the market trend and despite the difficult global market trading conditions experienced for most of the year. During this time some of the key drivers of the business performance has remained relatively strong. The company sees this as evidence that the execution of the strategy of business improvement through a higher value and more stable product mix over recent years contributes to stronger business performance.
The most significant development for the business in the 2014-15 season was the acquisition of the Everyday Cheese Business from Lion that was concluded just a few weeks ago. Saputo’s intentions on acquiring WCB were to invest in expanding WCB’s manufacturing capacity and capabilities and to support existing management to accelerate WCB’s growth in Australian and export markets. This acquisition follows through on this undertaking which going forward the company believe's will be a significant step in delivering stronger business performance and less volatility over the longer term.
WCB is in the final stages of determining its opening milk price for the 2015-16 season. World dairy prices remain depressed and are currently at the lowest levels the company has experienced for some time. The timing around the recovery in world market conditions is not known and in this environment it anticipates a more challenging outlook for milk price. It is taking a cautious approach in this process to ensure that the opening price is deliverable and reflects the company's best assessment of expected market conditions for the year.
The WCB annual supplier road show will be held during the week commencing July 13, 2015 where there will be representation from Saputo including Lino A. Saputo, Jr. Details of venues and times will be provided in the near future.
