Last year the Silver Fern Farms company was able to return to profit thanks to a capital injection from Chinese company, Shanghai Maling, although the co-operative that owns 50 percent of the company posted a loss.
Turning around its business from $30m in the red to $15m in the black in a year is a great success story.
Chairman for Silver Fern Farms Co-Operative, Rob Hewett joined Rural Exchange to discuss their great success story – turning around a business that was $30m in the red to $15m in the black in just a year.
He says the company’s re-structure has left some people confused about the results.
“It is complicated. We have two entities – the business, which is procuring and processing all the livestock, which is Silver Fern Farms Ltd, and that made the $15m profit,” he said.
“And then we have the co-operative which used to do all of that, but now it owns 50 percent of Silver Fern Farms Ltd alongside Shanghai Maling, and its main revenue stream is the dividend that Silver Fern Farm produces” Hewett told RadioLIVE.
He says it is “more complicated” at the moment as the co-op has to report a 15 month period this year due to the balance date shifting from the end of September to 31 December.
“There’s three months in there additional to what we would normally [report].”
Watch the full interview with Rob Hewitt above.