Ruralco’s ability to respond quickly to farmers’ needs and current market conditions have been key to its success in achieving pleasing revenue results in the 2022 financial year.
This year provided a number of challenges for shareholders and the Ruralco business as farmers continued to face regulation and compliance issues, climatically challenging weather patterns, Covid interruptions and high on-farm inflation and production costs.
“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. Most notably have been fuel and fertiliser costs, but also general price increases due to supply issues and labour shortages as we continue to face the fall-out of the Covid-19 pandemic,” says retiring Board Chair, Jessie Chan at the 59th Ruralco Annual General Meeting last night.
“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.”
Ruralco has achieved pleasing revenue results for 2022 through some price increases, but also through market share and it has demonstrated over the financial year that seasonal expenses are under control, says Jessie.
The business continued to grow its Group Turnover, recording $279.1 million compared to $245.3 million last year. Gross Profit slightly increased to $12.0 million compared to $10.6 million in the previous year, and EBITDA increased slightly to $1.27 million compared to $1.23 million last year. Group Equity at the end of the 2022 financial year was $17.3 million, up from last year’s $16.9 million.
Jessie says 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.”
“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,” she says.
Last night’s AGM was also an opportunity to farewell retiring Director and Chair, Jessie Chan, and independent Director, Brent Wheeler, after nine and five years of service respectively. Both were thanked for their wealth of expertise and passion for the co-operative.
An election for two vacancies on the Board saw three candidates seeking election – former lawyer and contract milker from Hinds, Kate Beaumont-Smith; accountant and equity partner in a small dry stock farm and calf rearing operation, Rhea Booker; and current Director and Dunsandel dairy farmer, Tony Coltman.
Rhea was elected along with Tony who was successfully re-elected for a third term on the Board.
The appointment of new independent Director, Helen van Orton was also announced. Helen is a professional director with 20 years of directorship and executive leadership experience and is currently Chair of the HR Institute of NZ and a board director of the Co-operative Bank, Co-operative Life Ltd, Centrix Group Ltd and Zeal.
The Board will appoint its new Chair at its next meeting in December.
Images:
Ruralco Group Manager Farm Supplies Retail, Jono Pavey with retiring Ruralco Chair, Jessie Chan.
Re-elected Ruralco Director, Tony Coltman.
Newly elected Ruralco Director, Rhea Booker.