Ruralco has posted gross profit of $12 million compared to $10.6m last year, despite a number of challenges for shareholders.
“While commodity prices continue to remain high for many agricultural sectors, input costs have markedly increased, putting pressure on our farmers and reducing overall margins,” retiring board chair Jessie Chan told Ruralco’s annual meeting.
Fuel and fertiliser costs and general price increases due to supply issues and labour shortages have been a challenge, she said.
In addition, “significant weather events and continuing regulatory compliance issues have continued to create challenges for the wider farming community and Ruralco. Despite these difficulties, both Ruralco and our farmer shareholders have shown resilience.”
Turnover was $279.1m compared to $245.3m last year.
EBITDA increased slightly to $1.27m compared to $1.23m last year. Group equity at the end of the 2022 financial year was $17.3m, up from last year’s $16.9m.
Chan said Ruralco’s ability to help farmers enhance their on-farm production by supplying the best advice and competitive pricing remains a mainstay of the business. “Ruralco is in the business of supporting farmers by supplying products and services for productivity,” she said.
“Our core purpose remains unchanged as we approach our 60th anniversary in 2023 and it continues to be intertwined in all aspects of our business. Ruralco was established by farmers, for farmers and it’s a mindset we still have and will retain was we continue moving forward.”
The meeting was also an opportunity to bid farewell to Chan, who is retiring as director and chair after nine years of service, and independent director, Brent Wheeler, after five. Both were thanked for their wealth of expertise and passion for the co-operative.
Rhea Booker, an accountant and equity partner in a small drystock farm and calf-rearing operation, was elected to the board and current director and Dunsandel dairy farmer Tony Coltman was successfully re-elected for a third term. The appointment of new independent director, Helen van Orton, was also announced.
The board will appoint its new chair at its next meeting in December.
