NZ Beef’s US Opportunity and the Dairy Beef Initiative
Good medium to long term prospects for NZ beef, especially in the US, has heighted the focus on various initiatives to capitalise on this situation.
Since paying shareholders a rebate of $20/tonne for the year ending May 31, 2022, the co-operative had been facing financial headwinds - caused mostly by plunging volumes.
But that's set to change. For the financial year ending May 31, 2026, Ravensdown is reporting a $50 million profit before tax, backed by a solid lift in fertiliser demand.
Fully paid shareholders will receive a cash rebate totalling $14 million or $15/tonne. Partly paid shareholders will this year receive their full rebate in the form of shares.
Revenue for the year topped $971m, 20% up on the previous year.
After several years of subdued fertiliser demand, improving agricultural returns, particularly for sheep and beef farmers, have supported a recovery in nutrient applications and sales volumes.
Overall fertiliser sales volumes were up 8% with over 1 million tonnes sold, compared to 962,000 tonnes sold in the previous financial year.
Ravensdown chief executive Garry Diack says the co-op last broke the 1m tonne sales mark in the 21/22 financial year.
He told Dairy News that it was great to pay a rebate to shareholders after three years.
Diack says Ravensdown "operates inside the farmgate" of shareholders.
"We are part of their cost structure. If they do well, then we do well."
He says the jump in sales volumes was matched with better efficiency within the business, enabling the conditions to pay a rebate.
Over the past year, the co-op delivered a number of targeted projects to drive performance including significant investment in manufacturing commitment, freight optimisation, improved data decision support, and automation supported by AI.
"This result reflects the discipline we've applied across the business to become a more efficient, resilient co-operative," Diack says.
"By improving our operations, we've strengthened our financial performance while continuing to invest in the products, services and expertise our shareholders rely on."
Like other importers, Ravensdown continues to face shipping disruptions and be impacted by global oil price fluctuations.
But this financial performance demonstrated the value of the co-operative to deliver on its purpose in an increasingly uncertain global environment, according to Diack.
"International fertiliser markets remain heavily influenced by geopolitical events. Conflict in the Middle East, the ongoing war in Ukraine and broader supply chain disruptions continue to create volatility in both product availability and pricing."
Ravensdown's longstanding relationships with global suppliers and joint venture partnership with Ravensdown Shipping Services are valuable strategic assets that have proven their worth to the business and shareholders over the last year.
"Our supplier partnerships have been built over decades," he says.
