Ravensdown reduced prices four times and capped spring superphosphate prices during the year. Photo / Duncan Brown
Ravensdown reduced prices four times and capped spring superphosphate prices during the year. Photo / Duncan Brown
Despite lower-spending dairy farmers, farmer co-operative fertiliser company Ravensdown has announced a before-tax profit and rebate increase of 35 per cent - $62 million compared with $46m in 2015 to the end of May.
Farmers would receive a rebate of $41 per tonne on purchased fertiliser, on top of $21per tonne already received from an interim rebate, returning more than $44m to the rural economy.
"We outperformed the sector in terms of superior rebate in addition to passing on value in the form of technical advice, product quality and leading with price reductions throughout the year," Ravensdown chairman John Henderson said.
In the year Ravensdown reduced prices four times and capped spring superphosphate prices, yet it was able to invest $33m into infrastructure and $4m into research and development.
Chief executive Greg Campbell said the turnaround in fortunes was an ongoing trend.
"This gives us confidence that we'll continue to deliver for customers on the issues they care about. Morale is high and the team's doing a fantastic job right across the business," he said. "Because of that effort, the trading fundamentals are strong so we can focus on passing on value to owners all year round, not just in the rebate season.
"In 2015-16, we invested in infrastructure like new precision blending equipment, 98 per cent of our customers rated our fertiliser quality as good to excellent, and we are the largest employer of certified nutrient advisers in New Zealand."
He said the coming year was difficult to forecast but "significant production capacity" was coming on stream around the world "and we can use this trend to benefit New Zealand's agrisector".
"The technology side of our solutions strategy will also increase value in the years ahead. This includes developments like soil sensing from the sky, predictive feed wedge tools, whole-farm soil testing, custom-blended formulations and improved mapping capabilities. We also expect to see further growth in our Environmental Consultancy as more farmers seek our help on environmental mitigations, consenting and compliance issues."
