The Miraka base price was $6.67, only 2c under the Fonterra farmgate milk price but achieved on a much narrower range of products.
Miraka chief executive Richard Wyeth said whole milk powder prices achieved a premium over the Global Dairy Trade prices because of tailored specifications to long-term customers, sold through the privately owned marketer Global Dairy Network.
Good foreign exchange management also helped achieve the second-best payout in Miraka’s seven-year history.
Wyeth said the UHT plant ran at close to full capacity of 60 million litres over the financial year, producing consumer packs also marketed around the world by GDN.
He was speaking from Australia, on a business trip to grow the Taupo Pure brand of UHT and consumer packs of milk powders, principally to China.
Domestic and export sales of Whaiora natural smoothie blend in 400g cans had been slightly slower than planned but that brand and product category were still in their infancy.
Milk collection last season was up 4% on budget and volume so far this season is up 1%.
Along with the 2018 results Miraka updated its forecast to $6.45-$6.75/kg MS.
Wyeth said the financial results are only for the shareholders, which are the Maori trusts and incorporations in the region and investor partner Vinamilk of Vietnam, which holds 23%.
However, Miraka has a strong balance sheet with a 20% debt-to-debt-plus-equity ratio and made a net profit and paid a dividend along with retaining money for future growth.
The company is working on expansion projects now it is near processing capacity but Wyeth was not able to say any more.
As was the case in the 2016-17 season, one supply farm achieved 100% in Te Ara Miraka (the Miraka way) quality and therefore was paid the full 20c above the base milk price.
“We are incentivising good behaviour and it is leading to changes on farms,” Wyeth said.
Any upgrading of Te Ara Miraka for this season has not yet been determined.
