How farmers make spring count
OPINION: Spring is a critical season for farmers – a time when the right decisions can set the tone for productivity and profitability throughout the year.
Fertiliser co-operative Ballance’s revenue and gross profit tumbled last year as the co-op prioritised passing on price and cost savings to customers through the year.
The co-op’s revenue slipped from $1.2 billion last year to $929m for year ended May 31, 2024. Profit before tax also slumped, from $46.5m last year to $17.2m. The drop in sales reflected lower commodity prices and decreased sales volumes to 1.16m tonnes from continuing operations, Ballance says.
However, Ballance finished the financial year with a closing inventory of 281kiloton (281million kg), 37% lower than the previous year.
The lower working capital and sale of SealesWinslow business to Farmlands enabled $69m reduction in debt. The co-op also spent $69m in capital expenditure on co-op assets.
The Ballance board decided not to pay any rebate for the second consecutive year.
Ballance chair Duncan Coull says that facing another year of headwinds for the co-operative and its shareholders, Ballance prioritised debt reduction and passing on price and cost savings to customers through the year.
“We moved a number of times to provide affordable nutrients to our shareholders, absorbing commodity price effects internally in order to do so,” explains Coull.
In his first year as Ballance chief executive, Kelvin Wickham says key priorities were improving operational efficiency while maintaining a strong focus on health and safety.
“We continued to invest in our assets with $69 million of capital expenditure this year towards plant maintenance and upgrades to improve efficiency. Alongside continued investment in health and safety, this meant there wasn’t a lot left over,” says Wickham.
“We also had a focus on working capital and reduced inventory by 165kt, down 37% from the prior year”.
According to ASB, Fonterra's plan to sell it's Anchor and Mainlands brands could inject $4.5 billion in additional spending into the economy.
New Zealand’s trade with the European Union has jumped $2 billion since a free trade deal entered into force in May last year.
The climate of uncertainty and market fragmentation that currently characterises the global economy suggests that many of the European agricultural machinery manufacturers will be looking for new markets.
Dignitaries from all walks of life – the governor general, politicians past and present, Maoridom- including the Maori Queen, church leaders, the primary sector and family and friends packed Our Lady of Kapiti’s Catholic church in Paraparaumu on Thursday October 23 to pay tribute to former prime Minister, Jim Bolger who died last week.
Agriculture and Forestry Minister, Todd McClay is encouraging farmers, growers, and foresters not to take unnecessary risks, asking that they heed weather warnings today.
With nearly two million underutilised dairy calves born annually and the beef price outlook strong, New Zealand’s opportunity to build a scalable dairy-beef system is now.

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