New Zealand dairy co-operative Tatua has reported an annual 27% increase in earnings – a personal best per kg of milksolids for Tatua, and likely a record for the industry.
In a discussion with APNZ, chief executive Paul McGilvary noted that “the key difference with Tatua is that we don’t make milk powder at all, and we don’t make butter or cheese.” For a dairy company this may sound strange, but as McGilvary explains, “a relatively high proportion of the business … is in value added.” Indeed, Tatua’s strengths lie in high value speciality areas such as ingredients, flavours, and nutrition products.
This is a great example of a smart New Zealand business enhancing their strategy through innovation. It speaks to the advantage that adding value and taking calculated risks can generate.
By Emma Armitage, Business Analyst, BioPacific Partners