The co-op has 113 suppliers in North Island, has remained independent from Fonterra since its formation and has always paid a competitive milk price.

Fonterra’s milk price to farmers was $3.90 (19.27 c/l) for the same season. And Tatua is guiding $5.60 to $6/kg (27.7c to 29.5c/l) compared with Fonterra’s new forecast of $5.25/kg (25.9c/l) for this season’s milk.

Operating revenue for Tatua was $281.2m (€182.78m) and earnings before tax of $99.7m (€64.8m), which equated to $6.41/kg (31.7c/l) before retentions and tax.

Tatua has been expanding recently with the construction of a $65m (€42.25m) specialised powder drier. The new drier creates protein hydrolysates, which can be used by athletes, infants or elderly people, because it allows protein to be absorbed into the body at a much faster rate.

Tatua was better able to deal with dairy market weakness because of its product mix of caseinate, whey powder concentrate and AMF (liquid butter).

Profits at Fonterra rise 65%

New Zealand's smaller co-op Tatua doing well

Tiny New Zealand co-op Tatua has announced a payout of $6.30/kg milk solids (31.15c/l) to its farmer suppliers for milk supplied in the 2015/16 season.