By Philippa Stevenson
Agricultural editor
Taranaki-headquartered Kiwi Dairies, the first dairy company to announce its payout for the completed 1998-99 season, will pay its shareholders $3.62 per kilogram of milk solids.
The figure adds 37c to the Dairy Board payment of $3.25 announced in May, and is well ahead of the 25c margin
the company forecast earlier in the year.
Kiwi chairman John Young said the payout reflected a consolidation of the capital investment effort completed two years ago.
It could also be seen as a challenge to New Zealand Dairy Group, which has indicated it will top up the board's base payout with a 30c to 35c margin.
The two companies are in the midst of tough negotiations for a merger which is key to the formation of the proposed industry-wide mega co-op.
Dairy Group expects to announce its payout within two weeks.
