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.
Ravensdown’s 2021/22 Annual Results, announced yesterday, include an overall Group profit of $95 million.
The results also include an underlying profit of $68 million in the core fertiliser business, before taxation and rebate.
Chairman, Bruce Wills called it one of Ravensdown’s “best ever results”, achieved in a year dominated by volatile pricing and global supply challenges.
Total fertiliser sold was slightly up at 1.22 million tonnes, and revenue at $922 million was up $210 million on last year, reflecting the rising price environment that dominated the year.
“The rapidly rising international prices makes fertiliser hard to budget for our farmers. To help them, Ravensdown focussed on product margins and yielded a FY22 group margin percentage lower than last year.”
Chief executive Garry Diack says Ravensdown’s fundamental belief is that this cash is better in use on-farm than in the company’s hands.
“Consistent with out cooperative values we have positioned the balance sheet for another challenging year in 2023 with $347M of stock in store – providing confidence to customers for spring.”
Ravensdown Shipping Services provided a $26 million boost to the Group’s bottom-line performance.
“The volatility of the market is not going away, and we need the capacity to capitalise on procurement pricing opportunities, and we need to continue investment in technological support to reduce New Zealand’s fertiliser footprint. The need for a capital buffer for the increasing risk a cooperative structure faces, compels a conservative approach to shareholder rebate for 2022,” says Diack.
Given this year’s performance and next year’s challenges, a shareholder rebate of $25 per tonne has been declared.
The year at a glance
Federated Farmers president Wayne Langford is claiming “some real success” on the 12 policy priorities it placed before the Coalition Government.
Federated Farmers is throwing its support behind the Fast-track Approvals Bill introduced by the Coalition Government to enable a fast-track decision-making process for infrastructure and development projects.
The latest report from ANZ isn’t good news for sheep farmers: lamb returns are forecast to remain low.
Divine table grapes that herald the start of a brand-new industry in Hawke’s Bay have been coming off vines in Maraekakaho.
In what appears to be a casualty of the downturn in the agricultural sector, a well-known machinery brand is now in the hands of liquidators and owing creditors $6.6 million.
One of New Zealand’s deepest breeder Jersey herds – known for its enduring connection through cattle with the UK’s longest reigning monarch, Queen Elizabeth II – will host its 75th anniversary celebration sale on-farm on April 22.