Westland’s highest payout was $8.29/kg MS in 2007-08.
The company gave a 40 cent range because the New Zealand dollar was showing considerable volatility.
Chief executive Rod Quin attributed the high payout forecast to strong outlook for milk prices and continuing high demand for infant formula in China.
“International demand is still being driven by China but is strong across all key markets,” he said.
“Milk powders are still returning better than protein powders but the gap is closing.”
He said Fonterra’s botulism scare in China had not decreased the demand for infant formula there, though it had created new rules.
“The Chinese Government continues to push consolidation in their domestic supply base and new registrations are required for importers.
“But Westland is well positioned to work within these new rules and take advantage of the surging demand thanks to our relatively high milk growth and the wider range of product options we have available as a result of our investments in recent years.”
The predicted payout from NZ’s second biggest dairy co-operative and third largest dairy exporter was before retentions.
Westland’s milk production is up 16% on the season to date compared with last year, partly because of new farms that have started to supply in Canterbury but is in line with budget.
Canterbury suppliers went from 14 in the 2012/13 season to 34 for this season and Canterbury milk was now 18% of total volume.
Westland invested in a new nutritionals plant that was commissioned at the beginning of 2013 and Quin said it is now paying dividends for the company.
