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The 2023 financial year has been challenging for agriculture and for Ruralco. “Our business is closely intertwined with our farmers’ businesses. We have been heartened by your support despite the difficult times we have all faced with rising costs and the economic downturn putting pressure on our budgets and reducing overall margins,” says Ruralco Board Chair, Sir David Carter in reporting the Group’s $2.1 million loss for the 2023 financial year at last night’s 60th Annual General Meeting.

Like many organisations servicing the rural community we have also been impacted by rising interest rates, high inflation and input costs, and bad debt, while also remaining committed to ongoing projects necessary for the long term viability of the business. Our challenge has been to respond and adjust to these changes and commitments, resulting in our business moving from a growth strategy to a more consolidated approach which has seen Ruralco consider all costs wherever necessary, says Sir David.

This year’s Group Turnover was $293.3 million compared to $279.1 million last year. Gross Profit was $12.0 million, the same as last year, while Group Equity at the end of the 2023 financial year was $15.2 million compared to last year’s $17.3 million.

“Despite this financial result, Ruralco’s business model remains robust and competitive,” says Sir David.

This has been evidenced through strong support shown by members of the co-operative, especially flagship events such as Ruralco’s Instore Days which once again drew large crowds, matching pre-Covid levels.

“We were delighted by the positive response to this event given the economic climate. Instore Days is unique to Ruralco and a mainstay on farmers’ calendars, and next year the iconic event will mark a significant milestone as it celebrates its 30th anniversary – a testament to its successful formula and the high regard shown it by all sectors of the farming industry,” he says.

As Ruralco celebrates its 60th anniversary, the co-operative’s commitment to the rural community remains strong. “We are committed to the rural sector and your success. We are interdependent and recognise that your success is also our success. To that end, we will continue to deliver on our promises and stay true to our core values.”

Two new Directors were welcomed to the Board at the AGM. In accordance with the Society’s rules, Sir David Carter retired by rotation and was available for re-election, while earlier in the year, an additional vacancy was created by the resignation of a sitting Director.

Prior to an election, the Board decided to widen the skillset of the Board of Directors, by increasing the number of Shareholder elected positions on the Board from five to six, creating an additional vacancy. Two nominations were received; one from David Barron the current Managing Director of IT consulting and services business, Nectar Group Limited, based in Christchurch and is director of farming enterprises, Tallarook Dairies and Rahi Partnership; and the other from Kate Beaumont-Smith, a Mid Canterbury dairy farmer who has been contract milking for the last four seasons and was formerly a lawyer locally, and in England and Wales.

As a result, Sir David Carter, David Barron and Kate Beaumont-Smith were elected unopposed.