Blue chip dairy industry performer Tatua will pay its farmer-shareholders a record $11.30/kg milksolids cash for the 2021-22 year, while still retaining close to $20m from payout to reinvest in the business.

The Waikato cooperative has reported group earnings equivalent to $12.65 before retentions for the year ended July 31. This was up on the previous year's earnings of $10.43/kg and was achieved in spite of Covid-related disruption and shipping issues, the company said.

Group income was $444 million with earnings available for payout of $186m. Retentions were equivalent to $1.35/kg.

The 108-year-old specialist product company, which has 101 shareholder-owners, traditionally leads milk payout in the New Zealand dairy industry.

Dominant exporter Fonterra's final cash payout for 2021-22 was $9.50/kg.

Tatua chairman Stephen Allen and chief executive Brendhan Greaney said in deciding the payout, the company was very conscious of sharp increases in farmer costs, as well as the need for continued reinvestment in the business. Tatua had a number of significant capital projects and business improvement initiatives under way during the year.

Milk supply was impacted by a long dry spell in the autumn months, resulting in a 6 per cent fall in collection to 14.7m/kg milksolids on the previous year.

Gearing (debt divided by debt plus equity) averaged 21 per cent for the year, and was slightly higher at year end reflecting increased inventory holdings at balance date, the company said.