Agra reports 25% profit increase

THE Agra Co-operative has reported a gross turnover of N$1,11 billion in the past financial year, up from N$912 million during the previous review period, an increase of 22 per cent.

Agra released its annual report on Thursday, saying gross profit for the whole group came to N$92,6 million up from N$ 74 million in 2006, translating into a 25 per cent increase. The financial year ended on July 31 2007.”Although we experienced less favourable market conditions during the period under review and having incurred losses at the Alco feedlot, the overall livestock division made a net operating surplus of N$7,4 million,” said Agra Chief Executive Officer Peter Kazmaier.”This is slightly less than N$8,3 of the year ending July 2006.We implemented a new computer system and undertook several initiatives to improve communications, customer service and undertook focused marketing activities, which were the main contributors to the improved performance.”According to Agra Chairman Ryno van der Merwe, Namibia received poor rainfall last year.”Together with the decrease and sideways movement of meat and (karakul) pelt prices, rising input costs of fodder, animal lick and fuel and higher interest rates, the financial pressure on farming communities has increased,” Van der Merwe said at the Agra annual general meeting.Prices for cattle, goats and sheep increased.Average cattle prices in 2007 came to N$3 020 per animal compared to N$2 640 in the 2006 financial year.Sheep fetched N$433 per animal on average against N$419 the previous year.Goats fetched an average of N$422 per goat, which is higher than N$412 paid per goat in 2006.Agra marketed 161 385 head of cattle between August 2006 and July 2007, eight per cent more than the 149 584 animals the year before.Sheep numbers increased slightly, with 150 527 animals marketed, up from 150 527 animals in 2006.About 3 000 more goats – 115 507 – were marketed in 2007, up from 112 938 goats in 2006.Better prices for cattle sheep and goats during the review period brought Agra a turnover of N$487,3 million for cattle, better than the N$394,9 in 2006.Sheep fetched a total of N$65,7 million, slightly higher than N$63,1 in 2006.The 115 507 goats marketed fetched a total of N$46,9 million, up from N$45,3 million.Prices for karakul pelts at international auctions increased with 112 463 pelts – 109 807 in 2006 – sold at N$479 per pelt, compared to N$339 in 2006.The financial year ended on July 31 2007.”Although we experienced less favourable market conditions during the period under review and having incurred losses at the Alco feedlot, the overall livestock division made a net operating surplus of N$7,4 million,” said Agra Chief Executive Officer Peter Kazmaier.”This is slightly less than N$8,3 of the year ending July 2006.We implemented a new computer system and undertook several initiatives to improve communications, customer service and undertook focused marketing activities, which were the main contributors to the improved performance.”According to Agra Chairman Ryno van der Merwe, Namibia received poor rainfall last year.”Together with the decrease and sideways movement of meat and (karakul) pelt prices, rising input costs of fodder, animal lick and fuel and higher interest rates, the financial pressure on farming communities has increased,” Van der Merwe said at the Agra annual general meeting.Prices for cattle, goats and sheep increased.Average cattle prices in 2007 came to N$3 020 per animal compared to N$2 640 in the 2006 financial year.Sheep fetched N$433 per animal on average against N$419 the previous year.Goats fetched an average of N$422 per goat, which is higher than N$412 paid per goat in 2006.Agra marketed 161 385 head of cattle between August 2006 and July 2007, eight per cent more than the 149 584 animals the year before.Sheep numbers increased slightly, with 150 527 animals marketed, up from 150 527 animals in 2006.About 3 000 more goats – 115 507 – were marketed in 2007, up from 112 938 goats in 2006.Better prices for cattle sheep and goats during the review period brought Agra a turnover of N$487,3 million for cattle, better than the N$394,9 in 2006.Sheep fetched a total of N$65,7 million, slightly higher than N$63,1 in 2006.The 115 507 goats marketed fetched a total of N$46,9 million, up from N$45,3 million.Prices for karakul pelts at international auctions increased with 112 463 pelts – 109 807 in 2006 – sold at N$479 per pelt, compared to N$339 in 2006.