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Fiji Dairy Pays $1.2m Dividends To Farmers

Fiji Dairy Limited announced and paid dairy farmers $1.2 million as dividends during its annual general meeting on June 29. This is a significant increase compared to the previous year
07 Jul 2016 15:00
Fiji Dairy Pays $1.2m Dividends To Farmers
FCDCL

Fiji Dairy Limited announced and paid dairy farmers $1.2 million as dividends during its annual general meeting on June 29.

This is a significant increase compared to the previous year where only $0.5 million was paid out as dividends to dairy farmers.

This dividend payment this year equates to about 13 cents per litre of total milk supplied.  Dairy farmers own 20 per cent shares of Fiji Dairy Limited operation.

The remaining 80 per cent is owned by Southern Cross Foods Limited, a subsidiary of CJ Patel Group.

CJ Patel Group country manager, Vishwa Sharma, said this high level of dividend payment is on top of fixed farm gate raw milk prices paid to Fijian dairy farmers.

“Global dairy prices are almost at its lowest and Fijian dairy farmers are enjoying a premium compared to New Zealand and Australian dairy farmers,” he said.

“Low global dairy pricing leads to increase in imported liquid milk and higher competition to FDL’s locally-processed milk under Rewa brand.”

This is indeed a challenging time for the local industry as global dairy prices are forecasted  to be low for the next 12 to 18 months.

Despite this, Mr Sharma said local dairy farmers are paid fixed 87 cents a litre for premium grade milk plus $5.50/Kg of butter fat in excess 3.4 per cent.

A total of 320 dairy farmers are supplying milk to Fiji Dairy Limited factory in Nabua, Suva. Of this, 235 dairy farmers are from the Central Division and the rest from Western Division.

 

New products

Rewa Galaxy flavoured milk has been well received in the local market and exceeded company’s sales expectation.

Mr Sharma hinted innovation renovation pipeline was full and local consumers should expect some new dairy products very soon.

 

Investments, plans ahead

During the year, Fiji Dairy Limited invested $3.5 million in capital upgrade and another $3 million capital expenditure is planned for next financial year.

Statement of the annual general meeting was by Maciu Raikoso, the company secretary for Fiji Cooperative Dairy Company Limited.

He emphatically said the dairy industry restructure was working well and the dividend was one such example.

Fiji Dairy Limited is working closely with dairy farmers to finalise a Milk Supply Agreement and hopeful that this will be resolved within the next few months.

After the initial couple of years, the relationship between the milk processor and the dairy farmers improved significantly and now both parties are jointly working on industry concerns.

 

Feedback:  rachnal@fijisun.com.fj

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