Tatua Co-operative Dairy said it put in a positive performance over 2012/13 but that the current financial year would be much tougher.
The tiny Waikato dairy cooperative said its payout for the 2012/13 season just finished would be $7.40 per kg of milksolids, down 10c on the previous year's, and in addition to a pre-tax retention of $1.17 per kg.
The payout compares with Fonterra's cash payout, announced last week, of $6.16, which comprised a farmgate milk price of $5.84 and a dividend of 32c a share.
Tatua's revenue was $229.7 million, up a touch from $228m last year. Earnings were $107.4m, down from $109m.
The co-operative said the $1.17 per kg retention would ensure the company retained the financial strength necessary to invest in new plant and equipment to support its strategy of growing its specialised added value business.