Ravensdown's return to profit prompts shareholder rebate as fertiliser prices spike on-farm

Fertiliser co-operative Ravensdown has reclaimed profitability and is returning value to its farmer-shareholders, after a three-year hiatus of rebate payments. The co-operative reported a net after-tax profit of $30 million for the financial year ending May 31st, marking a stark contrast from the $5.4 million loss incurred last year due to the closure of its Dunedin fertiliser manufacturing facility.

This recovery follows a period of disrupted global fertiliser supplies caused by geopolitical tensions between the US and Iran, causing a surge in prices for nitrogen fertiliser, a key product in Ravensdown's range.

A $15 rebate per tonne will be given to fully-paid shareholders, and their rebates will either be in cash or as shares, depending on their level of investment. Chairman Bruce Wills expressed satisfaction in returning value to shareholders during a year of increased demand and supply uncertainty. CEO Garry Diack acknowledged the challenges faced by farming businesses but highlighted the role of improved agricultural returns, particularly for sheep and beef farmers, in driving the co-op's success.

Diack noted that international fertiliser markets are heavily influenced by geopolitical events, and while the co-op recognises ongoing cost pressures, it remains committed to providing stability to its customers. The co-operative has sought to reduce reliance on the Middle East due to conflicts in the region and has increasingly sourced from other suppliers such as Brunei and China.

Despite the geopolitical challenges, Diack does not foresee any issues in supplying product through the spring. However, the company remains vigilant, awaiting the effects of ongoing geopolitical developments on the industry.