Genetics Australia Co-operative Ltd has recorded a $1 million increase in sales revenue and an after tax profit of $545,000, reflecting improved weather and industry conditions.
The 2019-20 annual report shows a profit $300,000 higher than the previous year, while sales revenue grew by more than $1 million to $10,771,972 with a total comprehensive income of $2,625,991.
The co-operative has a net asset base of $13,508,398 which is an increase of $2,631,897 on 2018-19.
Genetics Australia chief executive officer Anthony Shelly and board chairman Trevor Henry said the positive result reflected the improved weather and industry conditions that were widely experienced in the dairy industry.
“While we have undoubtedly had a better season, there are still enormous challenges ahead for the dairy and herd improvement industries,” Mr Shelly said.
“We are very pleased with this result; however, we need to find ways of making that result more repeatable.
“This remains the biggest challenge for the co-operative, and the board and management are committed to developing the right business model that delivers sustainability and the scope for re-investment in people, products and programs.”
COVID-19 has added pressures to the business with staff working remotely and other restrictions that hampered some business functions.
Despite that, Mr Shelly said the co-operative was pleased with the way that it handled the COVID challenge and was looking forward to returning to a “normal” business environment for 2020-21.
“The cancellation of our GA 2020 Conference was a huge disappointment, however we managed to salvage much of the good work by shifting to online delivery platforms for a significant proportion of the content,” he said.
Genetics Australia’s export business continues to expand with demand from China leading the way.
“We have a strong belief in the ‘Australian cow’ at Genetics Australia, and it appears many countries are also recognising her unique qualities,” Mr Henry said.
“Our next step is to make her even more ‘green’ than she is now, by enhancing her disease resistance, heat tolerance and feed efficiency characteristics.”
The group entered into a contract in 2018 to sell of one of its farm properties, known as Parwan Park South, for $14.625 million.
The 125ha property was purchased in 1986 and was used as a quarantine facility for bulls prior to their admission to the co-operative’s main collection and EU facility, Parwan Park.
The company said funds raised from the sale would enable the group over time to reduce debt and to rationalise and improve its operations with strategic investments in infrastructure, systems and livestock.
Genetics Australia is continuing to develop its beef business.
“The prolonged drought has hit the beef sector hard, but we are pleased that our sales are recovering now as the industry itself recovers,” Mr Shelley said.
“I reaffirm our aim to improve the penetration of elite AI genetics into the beef sector and growing the number of shareholders joining the co-operative.”