“We didn’t need to lose our co-op. All we needed was directors that had the balls to make the decisions that got Westland on the right path,” Westland Milk shareholder Murray Stewart said.
“I just hope for everyone’s sake that Fonterra has those directors or the whole of the New Zealand dairy industry will be in big strife.”
Debt was just a wee part of the downfall.
“Just 18 cents of the payout aligned to the company’s debt but overheads were at $1.50 and increasing. That’s what buggered our company.”
Looking forward to the shareholders’ payout from the sale?
Stewart said there’ll be no boat, bach at the beach or overseas holiday, not even a new car.
“All of it will initially reduce debt which will save us 20c of our payout in the interest bill. We have to use it to get ourselves into a position where we are not going to get screwed ever again.
And the future? Stewart isn’t committed to the new owner long term.
“We have to supply for at least the next two seasons, that’s the way the rules dictate for notice of leaving and yes, if Fonterra comes in, and there’s every chance they will, then yes I could well jump ship.”
Stewart is one of 25 farmers in negotiations with Fonterra to collect from their area.
“If they can get enough to make it worthwhile it looks they will but I don’t want to jump from the frying pan into the fire. We’ll have to see where the current politics of Fonterra go,” Stewart said.
Grey Valley farmer Stu Bland said it’s a relief the uncertainty is over.
“While everyone is relieved there is an outcome there’s no parties. People have gone quiet. Everyone voted this way but there was no pleasure in it. We had to,” Bland said.
He’s not planning any extravagant spending.
“We had no say. The bank made that decision but it was always our intention to use it to pay back debt and also to reduce debt as much as possible over the 10 years to ensure we are financially in a strong position once the 10-year guaranteed milk price expires.
“This stronger position will give us land use options if dairy isn’t going well.”
And the future – well Bland said Fonterra has showed interest in the past.
“If the blue tankers start driving up our valley who knows what we might do if that option comes up.
“Meantime, we need Fonterra to perform because our payout is linked for the next 10 years.”
