Last year, two smallest dairy co-operatives of New Zealand offered highest and lowest milk prices. Tatua Co-operative Dairy Company took the lead with its payouts for 2008-09 standing at $5.38 a kg of milk solids.

Westland Milk Products had to face tough situation on account of unprecedented decline in market returns and made payout of just $4.50 a kg of milk solids. Steve Allen, the Chairman of Tatua Co-operative said that its total earning of $66.1 million before payout and tax would not be retained by the company, and would instead be returned to its 112 Waikato shareholders.

Mr. Allen admitted that the year remained difficult for the company against previous year when it paid $8 kg/ms to the shareholders. Production was adversely affected by drought-like situations in the past.

Richard Reynolds, the chairman of West Coast Federated Farmers dairy section said that the firm had anticipated a payout of $4.50 kg/ms. but some situations led to unexpectedly low payout. He added: "There is no more wash-up coming, which was as expected. When it goes bad for Westland, it falls quite quickly. "