The company released some financial results this week, which showed a pre-tax profit of $10.1million for the year ended September 30, up from $7.9million last year. It was based on a turnover of $1.36billion, down slightly from last year’s $1.5billion.
A $9.8million distribution would be made to farmer shareholders on the back of the improved result. There was no pool distribution made last year.
In a statement, Mr Taggart said global market prices had been at their most difficult in the last five years and any recovery in prices since May had been more than offset by the foreign exchange levels, particularly the British sterling and US dollar.
However, weather conditions across the country had also become more favourable as the year progressed which had provided a significant boost for farmers.
The company’s business transformation strategy was resulting in tangible benefits that had exceeded expectations, delivering gains of $56million compared to the budgeted $34million, Mr Taggart said.
Debt reduced from $129million to $41million and there was no seasonal debt. Shareholder funds were $302.5million, down from $308.9million, an equity ratio of 71%.
Although still in the early stages of a transformation, the company’s strengthened balance sheet and a "fitter" business meant it was on track to take advantage of global opportunities, he said.
Chief executive David Surveyor said the co-operative’s focus over the past year was on ensuring the business strategy gained traction.
"Our strategy is based around creating value from sales and marketing activities and lowering the cost base to deliver value for farmer shareholders.
"The weakening of market prices and global volatility over the year reduced group revenues but the value created from our strategy projects meant the co-operative was able to act as a buffer and absorb some of the impact on our farmer shareholders.
"We would have liked to have absorbed more and remain committed to finding ways to pay farmers more for their livestock," Mr Surveyor said.
The company had significantly improved its overall safety performance, which was a crucial part of its strategy.
"The 43% reduction in our total recordable injury frequency rate means fewer people getting hurt in our workplaces, which is good for our people and our business," he said.
The annual meeting will be held in Nelson on December 15.
