WAFarmers records an operating surplus

WAFarmers records an operating surplus

Agribusiness
Aa

WAFARMERS recorded an audited operating surplus of $82,176 for last year, its fourth annual surplus in a row.

Aa
WAFarmers president Rhys Turton.

WAFarmers president Rhys Turton.

WAFARMERS recorded an audited operating surplus of $82,176 for last year, its fourth annual surplus in a row.

Revenue from sales royalties on WAFarmersFirst milk and eggs increased 15 per cent and operating expenses declined 17pc, mainly through a restructure requiring fewer staff, offsetting declining membership, sponsorship and event income.

A financial report for the year ended December 31 said the 2019 results were affected by constitutional changes approved at the annual meeting last March which shifted reporting and membership periods back a month, resulting in earnings and costs being for 13 months, but membership fee revenue being for only 11 months, with the equivalent of one month's fee carried forward to 2020 as a "prepayment" for each member.

Membership continued to track down, "reflecting the ongoing aggregation of family farms", the report said.

"We seem to be retaining the same percentage of membership as we were in the 1970s with about one in three farm businesses being members of WAFarmers," it said.

Membership income for 11 months was $869,857.

Sponsorship and events income was $182,795, with WAFarmers' board deciding to discontinue the Heart of WA event after key sponsor Coles withdrew support.

A livestock forum in Kellerberrin in February last year was profitable and helped offset some of the decrease in events income.

Corporate partner sponsorship revenue decreased $8470 to $66,333 with "a distinct shift" to events-based sponsor commitments rather than a year-round partnership, the report said.

Royalties from milk and egg sales generated $322,518 in 13 months, $47,564 more than for the previous 12 months.

The report said half of the increase was due to the extra month and half due to increased egg sales linked to the Eastern States' drought and a decrease in national production.

In 2019 $64,048 was added to the Dairy Project Milk Fund, bringing its total to $97,256 as at December 31.

Annual operating expenses of $1,508,333 came in $211,547 under budget.

Members' funds increased to $515,472 and cash on hand and trade debtors increased to $937,791 as at December 31.

Total liabilities eased $27,838 to $543,653, the report said.

WAFarmers president Rhys Turton said 2019 had been a successful year with the board, chief executive officer and staff "committed to ensuring the long-term financial strength of the organisation while continuing our purpose of helping your farming business thrive".

Mr Turton said it had been a major priority in the first year of his tenure to restructure the organisation around long-term financial sustainability.

"It is important that our members and the farming community know that we are financially building our resources while continuing to engage in advocacy for agriculture at a State and national level," Mr Turton said.

"WAFarmers continues to support and work closely with our national bodies through the National Farmers Federation and the various peak commodity councils."

Aa

From the front page

Sponsored by