Well-placed to weather conflicts
Shipping disruption caused by Houthi rebels in the Red Sea has so far not impacted fertiliser prices or supply on farm.
Farm nutrient supplier, Ballance Agri-Nutrients will pay farmer shareholders an extra $20/tonne in rebate for the 2017 financial year.
The co-op says this takes the total rebate to farmers to $45/tonne, with a total distribution to shareholders this year of $54 million.
For year ended May 31 2017, Ballance’s gross trading result was up $22 million to $56.8 million. An average Ballance shareholder will receive a distribution of $4,500; the mid-winter boost in cash flow will average up to $8,000 for farmers using a high-value product mix, with individual payments of more than $100,000 to the largest farming interests.
Chairman, David Peacocke says there were significant efficiency gains in the business and increased demand for premium high-analysis products, while total sales across fertiliser, feed and the industrials portfolio were largely flat on last financial year at 1.62 million tonnes.
“Our cooperative rebounded from a tough prior year, with a very good result and distribution to shareholders along with a healthy balance sheet and strong cash flows.”
Continued financial discipline, and the strength of the cooperative’s balance sheet, is reflected in an equity ratio of 77.9%. Cash flow from operating activities was $83 million, compared with $35 million in the prior year. This allowed for the repayment of debt and resulted in a positive cash balance at year-end.
While revenue was 4% lower at $805 million, procurement savings in key fertiliser inputs, coupled with a record year of production at the Kapuni urea plant, enabled the cooperative to deliver value to farmers across the year together with an improved profit and distribution.
The Kapuni manufacturing plant’s return to full production saw it achieve record production of more than 277,000 tonnes, compared with a historical average of 260,000 tonnes.
A vet is calling for all animals to be vaccinated against a new strain of leptospirosis (lepto) discovered on New Zealand dairy farms in recent years.
Two major red meat sector projects are getting up to a combined $1.7 million in funding from the New Zealand Meat Board (NZMB).
Angus Barr and Tara Dwyer of The Wandle, Lone Star Farms in Strath Taieri have been named the Regional Supreme Winners at the Otago Ballance Farm Environment Awards in Dunedin.
OPINION: The distress that the politicians and bureaucrats are causing to the people of Wairoa and the wider Tairāwhiti is unforgivable.
Dairy
Rural banker Rabobank is partnering with Food Rescue Kitchen on a new TV series which airs this weekend that aims to shine a light on the real and growing issues of food waste, food poverty and social isolation in New Zealand.