No.8 Wire: Record rebate after co-op's strong year

Greg Campbell

Farmers throughout the country are to benefit from Ravensdown's strategy and its focus on strengthening its balance sheet as the co-operative reports a record rebate of $50 per tonne.

The rebate was revealed in a media release this week and the company says it is paying out all its operating profit in rebate to farmers who have bought fertiliser from the co-operative in the year ending May 31.

A fully paid-up shareholder who applied 150 tonnes of fertiliser will receive $7500 in cash rebate in August.

The chairman John Henderson said in the second year of a more focused strategy "we again made significant progress on the balance sheet front, so we were in a position to support those customers who need the cash and capital more than us right now".

"This is why our co-operative exists, to run an efficient, value-adding business so that we can help our shareholder owners when they are facing tough times," he said.

"We will continue with the improvement to our stores and manufacturing network, but we do not have to ask shareholders for additional equity or investment to fund our planned manufacturing or operational upgrades."

The co-operative is virtually debt-free in 2014-15 compared to owing $355 million in 2012, he said.

Ravensdown earned an operating profit of $51.9 million, despite one-off costs associated with the closure of Waikeratu's lime quarry.

Chief executive Greg Campbell said it was not a one-off result but built on the back of a solid strategy that has worked since 2013.

"The first year we bounced back. The second year we are able to help all those farmers who stuck with us," he said.

Field Day success

Hawke's Bay Regional Council is hoping to strengthen its relationship with the Hawke's Bay A and P Society following a successful partnership with the National Horticultural Field Day, held in June at the showgrounds in Hastings.

Society general manager Brent Linn yesterday reported to the council's Environment and Services Committee on the success of this year's event.

Committee chairman Rex Graham said: "The primary production strength of Hawke's Bay comes to the fore in this event, and we continue to be a key partner in it, given our focus on land and water management.

"We will look at how to better integrate council's operational work with this growing event," he said."We cross paths in numerous events managed by the society and both have historic roots in the rural settlement of Hawke's Bay."

Spuds on the move

Fresh potatoes from New Zealand have been approved for export to Vietnam, providing a new export opportunity for growers.

Potatoes NZ chief executive Champak Mehta said the development, following four years of negotiations, would absorb excess potatoes in good growing seasons and provide better export prices in less abundant years.

New Zealand has an annual potato export worth about $100 million, mainly frozen but with about 30,000 tonnes as fresh produce.

"Most fresh product goes to Fiji, with some to other Asia Pacific markets. The Vietnam market can be supplied by New Zealand potatoes over a long period of time due to exceptional storage conditions."