Tatua dairy co-operative has nearly doubled its milk payout for the past season and will pay its suppliers $8 per kg of milk solids.
The Waikato based company says this is a dramatic improvement on the previous season's payout of $4.10 and is 10 cents/kg above Fonterra's final payout for the 2007-08 season of $7.90.
Tatua will retain tax-paid earnings of 37 cents per kg of milksolids for re-investment in the company.
It says it generated record revenues of more than $185 million for the f14 months to July this year, despite a drought in summer in Waikato reducing the milk from all its suppliers.
The company says the rise in milk payout from the previous season reflects the volatility of the international dairy and financial markets, and it expects this to continue.