Brigitte Weidlich
28 November 2008
While the year 2008 "will be remembered for uncontrollable price increases for fuel, fodder and lick, which has put enormous pressure on the real returns and profitability of farmers", Agra reported a record turnover of N$1,2 billion and its highest ever net profit after tax of N$20,3 million, chief executive officer Peter Kazmaier said yesterday.
Releasing the financial results for the financial year ending July 2008, Kazmaier said despite soaring price increases and resultant input costs, it was a bumper year for the cooperative and the net profit the highest ever.
However, he said: "The disposable income of agricultural producers was also limited because of higher interest rates and increased inflation."
Despite this, Kazmaier said:"Group net profits before tax increased by 80 per cent to N$24,4 million against N$13,5 million the year before.
it is the first time in Agra's history that net profits after tax went beyond the N$20 million mark, the highest gross turnover ever and " Kazmaier attributed the good performance to increased cost and operational efficiency, staff training and adherence to various internal control system, while wholesale and retail business in agricultural goods and services showed an overall increase of 25 per cent, Kazmaier added.
"For the first time ever an allocation of N$12 million will be credited to the loan accounts of Agra members, calculated according to each member's business undertaken with the co-operative."
The quantities of karakul pelts at the two international auctions in Denmark during the past fiscal year increased by 20 per cent from 112 463 pelts to 135 484 pelts.
The livestock section however experienced less favourable conditions due to increased operational expenditure and reported only N$5,1 million operating surplus (before head office charges) compared to N$7,4 million in the previous financial year.
Ryno van der Merwe, who is Agra's board chairman, yesterday said that despite unfavourable market conditions, Agra managed to grow its business.
Agra closed 20 retail branches in Namibia as well as the Ondangwa Service Station, Safari Den, Auas Veterinary & Medical Products and Auas Wholesalers.
Agra organises livestock auctions and is involved in practical livestock farming courses mainly for farm workers together with the Cheetah Conservation Fund.
Agra is the country's largest agricultural co-operative with 7 400 shareholders.
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