WESTLAND MILK PRODUCTS

FOREWORD Matt ORegan, Chairman - Westland Milk Products

As Chairman of the Board it is an honour to be with Westland Milk Products during its 75th Jubilee celebrations and a privilege to be part of a company with such a rich and proud history. Our 75th anniversary provides an opportunity to reect on the past and celebrate our remarkable achievements. Our success has been characterised by the outstanding contribution shareholders, directors, senior management and employees have made in order to create and grow Westland to the company it is today. As a united cooperative we have surrounded ourselves with practical and passionate people who are committed to the same principles that applied 75 years ago. With a world class manufacturing plant and annual turnover of more than $500 million our investment in people willing to adopt new and progressive cultures of change has paid off. The year 2012 also marks a new era for Westland Milk Products as we embark upon a new phase of manufacturing value added milk products for the global nutritional market. Westland Milk Products has nearly doubled the value of its exports to just under 4% of New Zealands total dairy exports over the past ten years and is a force to be reckoned with on the global dairy stage. The company is now successfully marketing high quality dairy products to more than 70 customers in 40 countries around the world. With milk payments to the West Coast region totalling $360 million in 2010/11 equivalent to approximately $10,000 per person on the Coast, Westland is now an integral part of the local economy. In itself this could not have been achieved without the support of the local community, which has supported Westland every step of the way. A signicant milestone in the companys history was the unanimous shareholder vote in 2001 to remain independent following deregulation of the industry. This decision gave the company the ability to market its award winning quality milk products directly to its customers and carve out its own successful position in the global dairy industry. Since this historic vote took place, Westland has experienced a 60 per cent increase in milk solid production and typically pay-outs to farmers have remained competitive. Westlands success can also be attributed to a co-operative structure. The low cost membership to the co-operative, of $1.50 per kilogram milk solid supplied, has enabled farmers to use capital for land development and direct expenditure towards enhanced milk production and farm operational improvements. For Westland the future looks very promising with fast growing middle classes emerging in developing countries. Increased consumer demand for protein, and the requirement for safe traceable food supplies presents us with an opportunity for further growth and increased shareholder returns. With a history of producing internationally recognised high quality products we are well positioned to take advantage of these global trends, particularly in the paediatric nutrition arena. The move towards nutritional products will rmly secure Westlands place in the rapidly advancing global dairy market. Expansion and growth of the company requires an increased milk supply. Canterbury dairy farmers now have the option of supplying Westland and it is anticipated that our new nutritional plant in Hokitika will be adding to milk payout. As always our eyes are on the future. With joint venture partnerships and structural board changes being considered, Westland Milk Products will be vigilant in maintaining its core values of unity, dedication, respect and loyalty. The culture that has been developed from the pioneering spirit that has grown the company to what it is today, will allow Westland to adapt to the changing demands of the market and the environment we farm in. More than ever, Westlands future success will be determined by the ability of our shareholders, employees, board and management team to work together to achieve agreed outcomes. This is the foundation on which Westland Milk Products was based 75 years ago and will remain in the years to come.

THE PIONEERING SPIRIT

Westland Milk Products came about through the spirit of pioneers 144 years ago. While the co-operative was formed in 1937, it was these pioneers who laid the foundations for our history of success. Our journey starts in Hokitika, 1868 with the Hokitika United Dairy Company.

Inter-Wanganui Dairy Company

1893 - 1897 FIRST COMMERCIAL DAIRY CO-OPERATIVE - KARAMEA By 1893 the farmers of the Karamea area had about 400 cows in total and a meeting took place in the State School house, Lower Karamea on the 26th April, 1893 to consider the formation of a co-operative effort to provide a butter factory. Butter was stored in a pit dug into the bank near the factory and the boat service was monthly.
Karamea Co-operative Dairy Company 75th Jubilee Booklet.

1899 - 1937 KOKATAHI DAIRY COMPANY Kokatahi is often regarded as the spiritual heartland of Westland Co-operative Dairy Company. It was here that the rst moves towards amalgamation came in 1937 when the then Director of the Kokatahi Company set in motion the process which led to the formation of Westland.
Photo: Kokatahi Dairy Company in its early days.

1905 1948 ARAHURA DAIRY COMPANY The company tted a niche in the development of West Coast dairy farming. It stood its ground in 1937 and retained its independence. By January 1948 most of its suppliers had moved to Westland and the proud factorys heart nally ceased to beat.
Photo: Arahura Dairy Company early days.

1908 - 1967 INTER WANGANUI DAIRY COMPANY Inter Wanganui was given its name as the area it was to serve was between the Big Wanganui and Poerua (Little Wanganui) Rivers. It began life with 24 shareholders and survived for 60 years until it amalgamated with Westland in 1967.
Photo: The opening of the Inter Wanganui Dairy Company.

1868 HOKITIKA UNITED DAIRY COMPANY Like so many businesses in what was almost purely a gold mining town, Hokitika United Dairy probably disappeared very quickly. However its very existence showed that the production of milk for commercial sale was possible in Hokitika.
Photo: Early milk delivery.

1896 -1909 GREY VALLEY DAIRY COMPANY The Grey Valley Dairy Company operated as a major player on the West Coast dairying scene until 1908. The following year the Totara Flat factory was reduced in scale after the company became part of the Greymouth Fresh Food and Ice Company. For a time it was the highest producer of butter on the West Coast producing butter under the Silver Pine Brand.
Sketch: Steam Seperator, 1896.

1904 - 1912 GREYMOUTH FRESH FOOD AND ICE COMPANY After a successful start, tragedy hit during 1909 when the Greymouth factory burned down causing considerable loss of machinery and stock. It was rebuilt in 1911 but closed in 1912.
Sketch: Mehring Foot Power Milker, NZ Dairyman, December 1915.

1911 1987 KARAMEA CO-OPERATIVE DAIRY FACTORY COMPANY LTD By 1911 a co-operative had been formed and it was this company which continued an unbroken tradition of serving the Karamea farmers until 1987 when it amalgamated with Westland.
Photo: The factory about 1911 when the newly formed Karamea Dairy Factory purchased it from J. & T. Curtin.

THE PIONEERING SPIRIT

1912 - 1937 WEST COAST FARMERS CO-OPERATIVE was a force in the Greymouth area. It continued to thrive during the dairying boom of the 1920s but struggled during the Depression and in 1937 was taken over by Golden Coast Co-operative. 1912 - 1939 WHATAROA struggled during its existence and was forced to close down during the Depression.
Photo: Whataroa Dairy Factory.

1912 - 1920 BIRCHFIELD DAIRY COMPANY became part of the Buller Valley Farmers Co-operative in 1920.
Sketch: McCormick-Deering F12, sourced from A Vision of Progress.

1922 - 1969 GOLDEN COAST CO-OPERATIVE DAIRY COMPANY Golden Coast, centered originally in Reefton, was later based both in Reefton and Greymouth and for a number of years operated a further factory at Maruia. It was one of the more important companies which amalgamated with Westland in 1970 as it gave Westland control of most of the milk and cream supply from the Central West Coast.
Photo: Jack Mitchell Snr with the Golden Coast lorry on the Waitahu Bridge.

BULLER VALLEY
FOR THE
SEASON

COOL STORAGE PRODUCTION

14 TON
(EXPORT AMOUNT ONLY )
1911 - 1916 CHARLESTON DAIRY COMPANY had a relatively brief life but went on to play a major part in the history of dairying on the West Coast. It ceased to be an independent entity in 1916 when it merged with Buller Cool Storage and Dairy, which in tu rn became part of the Buller Valley Farmers Co-operative.This co-operative lasted for more than 50 years before it merged with Karamea which eventually became part of Westland in 1987.
Sketch extracted from NZ Dairyman, 1921.

1918 - 19

1912 - 1937 WAITAHA CO-OPERATIVE DAIRY COMPANY survived the depression years and grew into a small but effective company serving the farmers of the Waitaha Valley. In 1937 the suppliers were quickly convinced of the need to join the new co-operative being established at Hokitika.
Photo: Waitaha Dairy Factory in the 1920s.

1916 - 1920 BULLER VALLEY COOL STORAGE & DAIRY COMPANY rose out of the ashes of the Charleston Dairy Company and along with Bircheld was a parent company of the Buller Valley Farmers Co-operative Dairy Company (1920-71) which lasted for more than 50 years before merging with Karamea.

1923 - 1937 WESTLAND COOL STORAGE & DAIRY COMPANY From the chrysalis of this proprietary factory was to emerge the buttery of the greatest co-operative amalgamation in the history of the West Coast. Westland Co-operative Dairy Company was established on this site.
Photo: Westland Cool Storage & Dairy Company under construction 1922. Quotation from A Vision of Progress by Norman Crawshaw.

THE PIONEERING SPIRIT

ON THE ROAD TO SUCCESS

Westland Milk Products was formed in 1937 on the back of the pioneers success. Without them and their pioneering spirit Westland would not have existed.

Westland Dairy Company cream truck

1937 WESTLAND CO-OPERATIVE DAIRY COMPANY LIMITED Incorporated under the Companies Act 1933 on the 28th day of July 1937 with the amalgamation of: Westland Cool Storage and Dairy Company Ltd Kokatahi Co-operative Dairy Company Ltd Waitaha Co-operative Dairy Company Ltd
Photo: Westland Dairy factory and ofce.

1942 Despite the war the company managed to continue with the introduction of advanced technology. This meant that by the end of 1942 Westland was as technically advanced as it was possible for any dairy factory to be.

1949 TOWN MILK SUPPLY Westland took over the organisation of the Hokitika town milk supply. It collected the milk, transported it to Greymouth for pasteurisation and bottling and then brought it back to Hokitika for distribution by the six town milk vendors.
Photo: Restored Westland Dairy Company cream truck.

BUTTER
WAS APPROX

IN THE

PRODUCTION

TON

SEASON

472
1942 Westland Co-operative Producers Company was established as a distribution organisation for local sales of dairy produce. The two biggest items the store sold were chaff and pigs. Weaner pigs came from Addington and were then grown to maturity on the farmers skim milk. They were then returned to Addington by train and sold as porkers or baconers.

171

EARNED A

PAYOUT PER 1LB OF BUTTERFAT

30.638d

1937 MARK WALLACE Founding Chairman (1937-1975) Much of the credit for the success of Westland Co-operative Dairy Company belongs to one man who did so much to ensure that the co-operative spirit reigned on the West Coast.He was awarded an MBE in 1965 by Queen Elizabeth II.
Photo: Mark Wallace.

1939 CREAM COLLECTION In December 1939 the companys trucks travelled 8,307 miles. 476 ton of butter was produced in the 1939-40 season.
Photo 1: A churn similar to Westlands, 1939. Photo 2: Rupert Roberts in front of cream collection truck, 1938.

1950 A bulk store and ofce were built. This building is well constructed and a substantial addition to your companys assets, of pleasing design and a very denite utility value. - Mark Wallace 1951.

ON THE ROAD TO SUCCESS

SEASON

1942 - 43

1950 51 SUPPLIERS

1962 An M type vacreator was installed which increased the throughput of cream treatment and at the same time was more economical in the use of steam.
Photo: The Vac 25 installed in 1991 replaced the 1962 model.

1965 The nal directors meeting in 1965 was to be one of the most crucial in the entire history of the company. It was to change the direction of the company.
Extract from Mark Wallaces letter to suppliers - December, 1965.

867
TON OF BUTTER
THE 1955
PRODUCED DURING

- 56

I am writing this letter on behalf of my fellow Directors because of the evidence of growing interest in the possibilities of tanker collection of whole milk replacing the present system of home separation. ...as far as we are concerned, it is becoming increasingly evident that our industry must revise its thinking respecting butterfat as being the only marketable constituent in milk used for butter manufacture and that skim and buttermilk are by-products useful only as calf and pig foods.
1963 A second-hand stainless steel cooler in rst class condition was purchased. In October 1963 it was decided after some discussion to order a replacement 58 box butter churn. Production for the 1963-64 season was 1,117 ton of butter.
Photo: Westland Co-Operative Dairy Company Directors & Executives 1963-64.

1955 - 56 A Benhil semi automatic butter patter was installed which could pack 45 boxes per hour as opposed to 20 and would save four ounces of butter per box. Over a season this amounted to 2,220 pounds of butter and saved one labour unit. As production was still steadily rising a second 2,000 gallon cream holding vat was installed.

SEASON

1967 AMALGAMATION OF INTER WANGANUI DAIRY COMPANY WITH WESTLAND CO-OPERATIVE DAIRY COMPANY The proposals for amalgamation as set out by the Westland Dairy Company are acceptable to the Directors of the Inter Wanganui Dairy Company subject to ratication by the suppliers of the Inter Wanganui Dairy Company. Minutes of Directors meeting 12 May 1966. The area which had been served by Inter Wanganui for 30 years was now part of the Westland domain.
Photo: Directors of the Inter-Wanganui Dairy Company about 1933.

ON THE ROAD TO SUCCESS

A VISION OF PROGRESS
The Westland Dairy Company and the farmers who support it are leading Westland into its second century with vigor and enterprise .The Dairy Company is to be congratulated upon being the rst in the South Island for this type of factory....the Guardian would voice the feelings of the whole district in wishing the project every success in production and in marketing. The Hokitika Guardian, 1968.

Westland Milk Products, 1968.

1970 Golden Coast Co-Operative amalgamated with Westland, giving Westland control of most of the milk and cream supply from the Central West Coast. A 100-box stainless steel churn was purchased and installed in place of the 58-box churn, together with a new automatic three-pass Vekos boiler, which proved an efcient unit effecting a considerable saving in coal.
Photo: 1968 tanker.

1978 Five tonne per hour Pasilac continuous butter making machine installed At ve tonne (200 x 25 kg boxes) per hour it produced as much as four 100-box churns could achieve. 1979-80 New butter factory commissioned New silos and a new automatic butter packer were installed and the pasilac was relocated to the new site. Butter production had doubled: from 1,735 tonne in 1968-69 to 3,544 tonne in 1979-80. The new butter factory was capable of producing about 20,000 tonne in a full season.
Photo: Tanker eet in front of Butter Factory 1979.

1986 Original butter factory demolished and a new administration block built on Weld Street site.
Photo: New administration block.

IN THE

4 ,098 TON OF MILK

1 2

1972 - 73

POWDER PRODUCED
1979 New foster wheeler boiler & building was commissioned with a capacity of 25,000 lbs/hour at 300psi and was Westlands rst move into water tube boilers. 1983 New FMG fully automatic bulk packing and carton handling machine installed.
Photo: Foster Wheeler boiler.

1968 POWDER FACTORY OPENED 2nd August. A spray skim milk powder factory was commissioned with a one ton per hour evaporator and drier and auxiliary equipment. This was Westlands rst move into wholemilk collection. The wholemilk was delivered to the factory by three tankers and trailers. The cream was separated and sent by tanker to the butter factory located 1km away, skim milk was retained and spray dried into skim milk powder. A small amount of wholemilk powder was also produced. Pigs would no longer be a necessary factor in the farm economy as there would now be no need for farmers to separate their own milk and cream.
Photo 1: New Powder Factory under construction. Photo 2: Completed Factory.

1972 New stork 20,000 lph evaporator & 2 tph spray drier installed This drier could handle two ton an hour, twice the capacity of the existing plant. 1974 Swiss Pat Machine purchased (metric calibrated) to accommodate the increased patting requirements of an expanding local market. 1975 New cool store built on the present butter factory site. This was the rst stage of the full relocation of the butter factory.

SEASON

A VISION OF PROGRESS

1991 WESTLAND LOGO Charlotte Riley, a 6th form student at Westland High School won the competition for Westland Co-operative Dairy Company corporate logo design.

1992 NEW POWDER PLANT COMMISSIONED Opened on August 14th by the Prime Minister, the Right Honorable J Bolger. The new plant gave the company the scope to produce specialised consumer products. When fully operating, it could produce 5.2 tonne of skim milk powder an hour from 50,000 litres of milk and 4.6 tonne of wholemilk powder per hour. This drier was tted with a full bag house to eliminate drier exhaust emmissions. Karamea Factory closed.
Photo: Completed Powder Plant.

1994 ISO 9002 QUALITY ASSURANCE ACCREDITATION This provided customers with the assurance that all manufacturing processes were up to the appropriate ISO standards. Administration and Trading moved to new premises on Livingstone Street.

1996 DAF (dissolved air otation unit) commissioned to enable Westland to treat efuent more effectively. Up until this time the only efuent treatment available was by way of a fat trap system on the butter factory efuent. 1999 Casein factory in Karamea recommissioned to cater for the peak milk ow over a three month period. This enabled the next capacity upgrade on the Hokitika site to be delayed for three years.
Photo: DAF being installed, 1996.

PEAK MILK SUPPLY EXCEEDS

ONE MILLION
LITRES FOR THE FIRST TIME
1987 Amalgamation of Karamea Co-Operative Dairy Company. The amalgamation meant that the number of dairy companies on the West Coast was reduced to one. Westland Co-operative Dairy Companys Golden Anniversary 1937-1987. New milk reception facility commissioned at Hokitika with unloading pumps that could discharge a tanker and trailer load of milk in 10 minutes.
Photo: Karamea Co-Operative Dairy Company.

1991 New tanker wash facility installed which enabled the washing of tankers to be carried out without interfering with milk unloading.
Photo: Tanker wash facility, 1992.

1993 New modugas powder packing plant, two 50 tonne milk powder storage silos and an upgrade of milk powder conveying system The plant was specically designed to pack all milk powder and had the capability to pack whole milk powder in a nitrogen gas atmosphere. The new packer could handle up to 550 x 25kg bags per hour. Modern technology meant each bags plastic liner could be heat sealed, individually coded, automatically loaded onto pallets and covered with shrink wrap plastic sheeting.
Photo: First production run using Westland bags.

1995 MILK PROTEIN CONCENTRATE (MPC) PLANT COMMISSIONED MPC56 is a high protein skim milk powder containing 56% protein. This was Westlands rst move into the latest membrane process technology.
Photo: MPC Plant (Plan view).

A VISION OF PROGRESS

THE ERA OF INDEPENDENCE

When dairy companies were amalgamating to form Globalco, which was to become the Fonterra mega company, Westland shareholders voted unaminously to remain independent: a vote to protect the local community against factory closures, job losses and capital ight.

Westland Milk Products.

2002 NEW MILK POWDER FACILITY COMMISSIONED Key components: - 6.2 tonne per hour Stork evaporator and drier. - Ability to produce the full range of skim and wholemilk powders, high protein milk powder (MPC), cream powders, functional and nutritional powders. - First washable bag house installed. - Milk separator installed with a capacity of 70,000 litres per hour. - Inline milk standardisation was also installed which replaced the old batch standardising system. ISO 14001:1996 certication obtained for Environmental Management Systems.
Photo: Drier Three being installed.

2002 1.5 million litre water tank and reticulation system installed which provided water for all processing systems as well as a supply to be used for emergency re water. 12 tonne per hour Avapac packing line and transport system installed
Photo: Avapac packing line.

2002 Adoption of new trading name Westland Milk Products Marketing Division established in Christchurch. Initially one marketing person was employed along with a planner-controller. This was soon followed by other documentation and marketing personnel. Karamea Factory Closed
Photo: Hokitika plant showing new trading name.

PEAK MILK SUPPLY EXCEEDS

TWO MILLION
LITRES FOR THE FIRST TIME
2001 WESTLANDS INDEPENDENCE At a meeting in June 2001 Westland shareholders rejected the Globalco (Fonterra) offer of a merger by a majority of 96.4%. After a second approach a few months later the same decision was made but this time by a majority of 100%. B Shed - A storage facility was leased in Christchurch to accommodate the growing volumes of dried powder storage requirements.
Photo: B Shed in 2007.

2002 25 MEGAWATT BOILER INSTALLED - Ability to produce 40 tonne per hour of steam at 40 bar pressure. - Installation of a coal blending facility to utilise West Coast coal. - Boiler exhaust ltering system to ensure particulate emissions are kept to an absolute minimum.
Photo: Boiler 4.

2002 NEW PROTEIN EXTRACTION PLANT COMMISSIONED This enabled very specialised products such as lactoferrin and co-isolate to be produced. The plant had the capacity to handle 72,000 litres of skim milk per hour. LABORATORY AND R&D CENTRE A laboratory and R&D facility was commissioned in 2002. While the lab replaced the old lab the R&D facility was a major move in that this was Westlands rst venture into its own in house product research and development.
Photo: Laboratory & R&D facility.

2003 PEAK MILK MILESTONE November 2003 saw Westlands peak milk exceed 2 million litres.

2003-04 AMF FACTORY COMMISSIONED Due to increasing milk ow, an upgrade to milk fat processing was necessary. A new 20,000 tonne per annum Anhydrous Milk Fat (AMF) plant commissioned.
Photo: AMF Seperator.

THE ERA OF INDEPENDENCE

2006 STAGE 2 PROTEIN PLANT COMMISSIONED Included the installation of a very specialised protein drier which also had skim milk powder capability. This also extended the overall capability to include caseinates, hydrolysates, MPC 56-85 (milk protein concentrate), whey protein concentrates and the full range of skim milk powders.
Photos: Protein Plant.

2008 SIG patting machines retired and replaced by Benhils with the capability to pack a variety of pats from 100gms to 500gms to meet the growing market requirements.
Photo: Benhil butter machines.

2008 EASIYO Westland aquired a share of EasiYo and FreshYo.

RECORD PAYOUT ANNOUNCED

$
1 2

PER KILOGRAM OF MILK SOLIDS

2005 PROTEIN PLANT A new specialised protein facility was approved by the Board of Directors. Because of its complexity and size it was agreed to build the project in two stages. Stage 1 was commissioned in 2005 enabling the manufacture of casein; including mineral casein, lactic casein, rennet casein and whey protein concentrate.
Photo: Protein plant.

8.29
2009 DAF RESERVOIR TANK A two million litre tank installed to increase waste water capacity.
Photo: DAF Reservoir tank installation.

2007 Westland Farm Centre relocated to new premises in the centre of Hokitika. 1.5 million litre water storage tank installed to increase onsite potable water storage. New Sales and Marketing Division ofces opened in Christchurch. Land at Rolleston purchased for a new warehouse and storage facility.
Photo 1: Westland Farm Centre, Hokitika Photo 2: Sales & Marketing ofces, Christchurch.

2008 RECORD PAYOUT Westland Milk Products announced a record company performance of $8.29 per kg milk solids.

THE ERA OF INDEPENDENCE

A PROMISING FUTURE
With a growing global population looking for safe, quality dairy products, Westlands focus moves to nutritional dairy products for the Asia Pacic region. Signicant investment is being made in nutritional product processing in Hokitika.

Westlands LXM train crossing the Arahura bridge.

2010 ROLLESTON FACILITY OPENED Purpose-built storage and ofce facility at Rolleston ofcially opened.
Photo: Westland Milk Products, Rolleston.

2010 MILK TREATMENT UPGRADE Installation of 300,000 litre raw milk silo; 230,000 litre skim milk silo and an additional separator taking the raw milk holding capacity to 1.2 million litres, and seperators able to process 210,000 litres/hr throughput.
Photos: Raw milk silo being installed, Hokitika.

2010 EARTHQUAKE HITS CANTERBURY On September the 4th, 2010 a magnitude 7.1 earthquake struck 23km from Rolleston causing signicant damage to Westlands warehouse and ofce facility as well as to product stored at Versacold.
Photo 1: Damage to administration block, September 2010. Photo 2: Butter stored at Versacold.

2010 EASIYO Westland aquired 100% ownership of EasiYo. EasiYos new manufacturing facility at Albany opened.
Photo: EasiYo HQ, Auckland.

2010 ARAHURA ROAD RAIL BRIDGE UPGRADE The new bridge ended the need for large assets to be dragged through the Arahura River to get to Hokitika. Equipment could now travel over Lewis Pass, turning off at Stillwater through Jacksons, Kumara and nally to Hokitika.
Photo: Westlands new raw milk silo, the rst large piece of equipment to cross the Arahura bridge.

2010 FIRST MILK BY TRAIN First Westland train of ten 21,000 litre LXMs of milk, total train volume 180,000 litres, arrives at Westland Milk Products Hokitika, from Rolleston; 19 August 2010.
Photos: Uploading LXMs at Hokitika.

A PROMISING FUTURE

2011 PIPE BRIDGE Pipe bridge extended across to the new Hokitika rail unload. Concentrated milk from Rolleston is pumped from the train across into the raw milk silos.
Photo: Unloading milk to raw milk silos at Hokitika.

2011 First Westland Milk Products Canterbury shareholders milk received.

Photo: Canterbury farm

2012 Work commenced on an upgrade to the Protein Plant in Hokitika to enable Westland to produce nutritional products.
Photos: Protein plant expansion.

PEAK MILK SUPPLY EXCEEDS

A SUCCESSFUL

MILLION
LITRES FOR THE FIRST TIME
2011 LIMITED INTERVENTION PACKING LINE Li 1200 installed. WESTLAND FARM CENTRE SOLD 2011 MILK CONCENTRATION PLANT Commissioned at Rolleston, aimed at halving the volume of milk transported to Hokitika.
Photo: Milk Concentration Plant, Rolleston.

THREE

HISTORY

FUTURE
2012 & BEYOND Planned upgrade in milk processing capacity and capability to produce high end nutritional products

A PROMISING

2011 PEAK MILK MILESTONE Westlands peak milk collection exceeded 3 million litres.

A PROMISING FUTURE

THE FINAL WORD Rod Quin, CEO - Westland Milk Products

Westland shareholders, staff and community can be very proud to be celebrating 75 years of business and I would like to acknowledge the dedication and determination of everyone associated with the company now and in the past, who has helped Westland to become the successful company it is today. The success of the past 75 years has set a solid foundation for a bright future. As we look to a changing future we must remind ourselves that the core purpose of Westland Milk Products, as a dairy cooperative, is to maximise the value of milk for our shareholders and this will be at the forefront of our decision making and growth plans. There is no doubt the business and social environment in the future will be very different from today as new markets emerge and change the world order. In recent times it has been America that has dominated the world agenda. Today this is changing, with Asia driving the next phase of global inuence. The recent rise of China in the world market follows a pattern of economic growth well above the long-run global average of 2.0%. Japans economy shone in the 1970s and 1980s but was followed by a major decline in the 1990s. China may reach a tipping point and start to decline as the age of its population increases and its one child policy limits growth rates. India, the Middle East and South East Asia will subsequently rise to dominate world population and economic growth. There will also be signicant nancial changes for many in Europe, USA and Japan. These developed countries will reduce in inuence as their people age and retire in larger numbers. Today, and in the long term, the production of food and in particular dairy products will continue to be in demand as global living standards improve for billions of people. As a result, dietary changes will occur and aging consumers will demand highly nutritious food from sources they trust. New dairy-based products will enter the market aimed at enhancing healthy lifestyles for mobility, memory and any number of age-related health issues. As consumers age, producing dairy-based products for aging minds and bodies will provide a large and growing opportunity for decades to come. Westland is already increasing its focus on functional health products for the young. The paediatric market is large and currently growing and it is in this market that Westland will further build its capabilities. Strategically it is critical to build capabilities which will lead to new options to maximise the value of milk. Westland will work with its customers and continue to be relevant to their futures, especially if we understand customer needs and anticipate their requirements. Focused customer relationships will provide further opportunities to create value from our capabilities. Sustainability will remain a key theme for agriculture. Farming in New Zealand will increasingly become corporatised as large scale farming efciencies become a prot driver for many farms. There will still be a place for the traditional family farm, although farm succession will be a challenge for these families. The range of payouts between dairy companies will vary as companies achieve key points of difference and offer different products to their customers. The New Zealand dairy industry will continue to fragment until growth in milk stalls and additional processing capacity becomes inefcient and expensive. A period of consolidation may be required to effectively remove surplus inefcient dairy processors. To continue our growth Westland will offer a range of customised products combining dairy and non-dairy ingredients which deliver solutions to customers. This is likely to include a range of retail branded products sold directly to consumers as we seek to secure more of the downstream value in the food chain. With growth plans based on nutrition in place for the short to medium term, the platform for the next 75 years is well underway. Great tasting and safe food will remain in demand throughout global changes. Farm methods and milk processing methods will change but the future will offer valuable opportunities for Westland. Technology will improve and productivity gains will be made but lets ensure people remain the essence of the company. Building on the wonderful platform that has been created, Westland stands to benet from being part of a cluster of excellence in NZ dairying. Living the company values of Respect, Dedication, Unity and Loyalty resonates with the pioneering spirit that makes Westland unique. Its now our responsibility to deliver on the current plans to ensure another vibrant and dynamic 75 years.

ACKNOWLEDGMENTS: The Pioneering Spirit & On the Road to Success: Images courtesy of the West Coast Historical Museum and History House Greymouth. A major source of information: A Vision of Progress The History of the Westland Co-operative Dairy Company and its Predecessors - by Norman Crawshaw, published 2004 LEGAL INFORMATION: A copy of the Westland Cooperative Dairy Company Limited trading as Westland Milk Products investment statement for class G shares is available at www.westland.co.nz

DISCLAIMER: This booklet is subject to copyright and as such may not be distributed, copied or quoted without appropriate acknowledgement, and without the written authority of Westland. Whilst Westland has obtained the information in this booklet from sources believed to be reliable Westland does not warrant the accuracy, completeness or suitability of the information for any specic intended use. If you wish to reproduce any information then you must communicate with Westland in case there are limitations on the availability of information to be used, and to ensure that Westland does not accept liability for any opinions expressed or material included.