11 Dec 2018 15:00pm
WINDHOEK, 11 DEC (NAMPA) Agra Limited recorded an increase of N.dollars 4.5 million in revenue despite a tough drought during the financial year ended 31 July 2018.
The groups revenue increased from N.dollars 1 546 749 000 in July 2017 to N.dollars 1 551 273 000 at the end of July 2018, as a result of a boost in weaner auction sales, particularly for calves and lamb.
Speaking at a media conference here on Tuesday, the groups Chief Executive Officer (CEO), Arnold Klein said the higher prices together with the lack of grazing led to a 16,2 per cent increase in the number of heads marketed.
The auction division in particular had a 40,5 per cent increase in revenue with a gross turnover of close to N.dollars 1.3 billion in the 2017/18 financial year, from N.dollars 921.5 million and a 40,7 per cent increase in its net turnover in the previous financial year.
A correction in the producer price for cattle, coupled with an increase in market share, had a very positive impact on the performance of our auctions division, Klein stated.
The main contributors to this performance were the increase in the price of weaners, with tollies achieving an average price of N.dollars 33.01 per kilogramme (kg) from 24.27 per kg and heifers achieving N.dollars 31.51 per kg from N.dollars 22.12 per kg from the previous year.
As a result of increased prices and lack of grazing, some ox producers chose to rather sell their weaners at these lucrative prices instead of reserving them to market as slaughter cattle at a later stage.
These factors contributed to a 48 per cent increase in gross turnover for cattle from N.dollars 745.8 million in 2016/17 to N.dollars 1.103 billion in 2017/18 and a 17,4 per cent increase in gross turnover for sheep from N.dollars 119.4 million in 2016/17 to N.dollars 140.2 million in 2017/18.
Farmers opted not to farm with goats during the financial year under review, due to export restrictions and severe drought experienced in the south and west of the country, which led to a decline in auction sales.
The gross turnover for goats decreased by N.dollars 2.5 million from N.dollars 44.9 million in July 2017 to N.dollars 42.4 million at the end of July 2018.
Meanwhile, Agra also recorded an increase in revenue over the period under review, amassing N.dollars 1 490 405 000 for the financial year ended 31 July 2018, compared to N.dollars 1 484 897 000 the previous year.