$65 million early windfall for Ballance farmers

14 August 2013

$65 million early windfall for Ballance farmers

More than 18,000 New Zealand farmers are in for some good news this week, as Ballance Agri-Nutrients delivers support for cashflows at the start of the spring season with an early record rebate payment.

Ballance’s record rebate and dividend will start arriving in shareholders’ letterboxes this week as the co-operative pays out $65 million to shareholders six weeks ahead of schedule.

The co-operative announced a rebate and dividend averaging $65 a tonne last month and advised shareholders it would pay out earlier than usual to help shareholders with early season cashflows.

The rebate averaging $60.83 per tonne and a fully imputed dividend of 10 cents per share represents an average $6,500 return to a fully paid shareholder. It follows the record trading result of $92.6 million delivered by the co-operative.

Chairman David Graham said it was very pleasing that the co-operative could support shareholders in their push for more efficient production throughout the year, as well as end the year in a good position to return some of their fertiliser investment through a very good rebate.

“We are proud of the fact we have achieved a record result in a very trying year and, more importantly, in a year in which we led fertiliser prices down for New Zealand farmers.

“I’m sure the early rebate payment will be a welcome deposit in many bank accounts around the country as farmers work through their spring budgets.”

In addition to a record rebate payment Ballance’s 18,300 shareholders are in line for a boost in the value of their shares with the Board recommending a 60 cent increase in the value of its shares to $8.10. Revaluations ensure that the growth in equity of the company is reflected in the value of shareholder investment.

Mr Graham, who is retiring this year, says he’s pleased to be leaving the co-operative in such sound shape.

“We say our shareholders are better off with Ballance and the rebate, result and appreciation in share value once again confirms this.”

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