October 2023
This article draws an economic comparison between Tatau Co-Operative Dairy Co Ltd (the Minnow) and Fonterra Co-Operative Group Ltd (the Whale).
Tatua Co-Operative Dairy Company Limited was established in 1914 in Morrinsville which is in New Zealand’s Waikato region and it is considered to be a world leader in the development and manufacture of specialised dairy ingredients and dairy foods.
The co-operative comprises one hundred and one shareholder farms and its four hundred employees are spread overs its operations in New Zealand, Japan, China and the USA.
Fonterra Co-Operative Group Limited comprises approximately nine thousand New Zealand dairy farmers and has about nineteen thousand employees. The company is the world’s largest exporter of dairy products and 25% of all New Zealand exports are Fonterra dairy products.
Rejigit noticed recent media announcements from both companies with regard to their financial results for the 2022 / 2023 trading year and it occurred to Rejigit that Tatua appeared to be punching way above its weight.
By way of perspective, Tatua’s total revenues were NZ$537 million which equates to 2.24% of Fonterra’s NZ$24 billion.
This financial comparison is not exactly an “apples with apples” exercise however there is commonality in as much as milk is the base manufacturing product for both companies. That said, there is a huge disparity between their bottom lines expressed as a percentage of revenues.
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Brendhan Greaney is the Chief Executive Officer of Tatua Co-Operative Dairy Co Ltd and he is deserving of congratulations for presiding over an outstanding result.