2017 Price Offer

RECORD PRICES CONTINUE

Another harvest is upon us and I am pleased to advise that MPC’s outlook for the 2017 season is positive.

Our company is financially strong and secure, our macadamias continue to be in high demand, the Australian dollar is trading at favourable levels and our factory is seeing the efficiency benefits from our long-term investment in quality infrastructure.

Even better for growers are reports, in general, for solid crops in all growing regions despite the dry conditions experienced during much of summer. There has been a noticeable increase in sigastus weevil activity in the Northern Rivers which has no doubt contributed to some crop loss. Growers have been making the most of the recent fine weather with pre-harvest clean-ups already completed in most orchards.

As a wholly-owned grower company, MPC is working hard to maintain strong prices for growers and ensure there is a balance between the best possible returns to growers and maintaining the long term future of the supply chain, all the while delivering the best level of service in the industry.

The global demand for MPC’s high quality products continues. Our customers report there is strong consumer demand for our products as they continue to deliver great eating experiences.  The Australian dollar is trading at similar levels to 2016, which has stabilised returns from our export markets.

Through MMI we continue to forge strong relationships throughout the supply chain and our balanced approach to the kernel and nut-in-shell markets continues. The MMI team is continuing to build supply chain relationships with kernel and nut-in-shell customers who share in our ideology of sustainable markets and value chains around the world.

MPC has, and always will, support the kernel market as a balanced spread of markets is critical to ensure long term stability in the industry. We will again be supplying some NIS to the Chinese market but will balance this with our strong commitment to the kernel market.

MPC’s financial position continues to be very strong, with recent investments in our receivals system, drying infrastructure, colour sorters and Napasol pasteurizer delivering processing efficiencies and ensuring we provide what our customers and consumers want – macadamias that look and taste great and are food safe.

This makes it all the more pleasing to be able to announce that MPC is maintaining the same record offer for nut-in-shell in the 2017 season as it did in 2016.

MPC’s 2017 Notional prices are:

  • Conventional NIS $5.20/kg
  • Organic NIS $6.30/kg
  • Organic-In-Conversion NIS $5.50/kg

 All at 33% Saleable Kernel Recovery, 3% Reject Kernel Recovery and 10% NIS moisture content.

Our 2017 offer includes:

  • Commercial grade paid at Premium prices
  • No Reject penalties
  • Free dehusking and sorting for deliveries with up to 10% NIH and 5% Gross Rejects
  • Increased radius-based freight subsidy
  • Increased upfront payment: $2.50/kg two weeks from the week of delivery
  • Anticipated final payment to the notional price by Christmas (cash flow allowing)

Our pricing is simple and transparent. Our price table steps are even up and down by KR% with payments reflecting exactly the amount of saleable kernel delivered as assessed by our grower friendly lab. We promote only a 33% SKR and 3% Reject KR price as this is the long term published industry average, while some other processors may promote 33,2,1 prices or the highest valued consignment.

Our commitment to honesty and integrity are cornerstones of our business.

Our focus remains the ‘Return to Farm’ concept, which not only includes an attractive price per kilogram, but a system that allows you to deliver more of your crop and reduce your costs and workload on-farm. MPC’s sorting system guarantees to remove only 100% reject NIS so you get the maximum value for your entire crop.

Remember you don’t have to be a shareholder to supply MPC

To discuss how you can take advantage of this offer, please contact Kevin Quinlan 0408 243 028 or Jim Patch 0427 243 900 today.

Payment terms

MPC understands the value of cash-flow to growers. To assist growers with their expenses we continue to offer a significant first payment. This season we have increased the upfront payment by $0.30/kg with all acceptable NIS deliveries now receiving $2.50/kg upfront payment two weeks from the end of the week of delivery (less levy and HWNS dehusking charges where applicable). The progress payment schedule will be forwarded later in the season, but it is anticipated it will be similar to previous years with progress payments commencing in July and final payment to the notional price by Christmas.

Freight subsidy (increase of 0.5c over 2016)
In 2017 MPC will once again pay a freight subsidy as part of the NIS payment system. We have reviewed freight rates and increased them by 0.5c/kg to reflect the costs applicable to growers.
This payment will be made to all growers, regardless of whether you use a contract carrier or cart NIS yourself. The amount to be paid will be radius based, reflecting the distance of your farm from MPC Alphadale (or the MPC depot you use).
The freight subsidy amount to be paid is outlined in the table below and is based on the weight of NIS delivered at 10% MC. The freight rebate will be paid as part of your NIS payments.

Radius from depot Subsidy Rate per kg NIS @ 10%MC
0-49.9km 3.0c
50-99.9km 3.7c
100km+  5.5c

 

  • To Download the 2017 Conventional NIS Price Table Click here
  • To Download the 2017 Organic NIS Price Table Click here
  • To Download the 2017 Organic-in-Conversion NIS Price table Click here

Nine NIS supply bonuses in a row: $0.30/kg Increase on 2016 notional price

For nine consecutive years MPC has delivered a final price above the notional price and with your continued support we expect the 2017 season to be no different. Another strong financial performance during 2016 has meant we are able to pay a $0.30/kg NIS bonus payment for all 2016 suppliers.

The final prices for 2016 including bonuses are:

  • Conventional NIS – $5.50/kg
  • Organic $6.80/kg
  • Organic-in-conversion $5.80/kg

 All prices are at the recommended industry standard of 33% saleable kernel recovery, 3% reject kernel recovery and 10% MC.

Our track record of additional payments over the past nine years combined with our delivery system that decreases your on farm work load, reduces costs and increases the quantity delivered has provided growers with industry leading returns.

The following table summarises our performance:

Season Additional Payment
2008 $0.15
2009 $0.07
2010 $0.15
2011 $0.30
2012 $0.15
2013 $0.15
2014 $0.15
2015 $0.30
2016 $0.30
9 Year Average  $0.19

 

Why MPC?
• Higher returns per Ha.
• We have a receivals system that decreases your workload while maximising the quantity and quality of the NIS you deliver;
• You are paid more at the critical time of the year;
• We have a history of increasing our NIS price at the end of the season;
• We have a strong commercial focus yet we exist purely to benefit growers;
• The combination of our delivery system, fast payments and great price result in industry leading returns for our growers;
• We have over 30 years of experience and a track record of delivering for growers;
• We are 100% grower owned and are focused on making more money for our growers;
• Financially stable and secure.

To discuss how you can take advantage of this offer, please contact Kevin Quinlan 0408 243 028 or Jim Patch 0427 243 900 today.

  • To Download the 2017 Conventional NIS Price Table Click here
  • To Download the 2017 Organic NIS Price Table Click here
  • To Download the 2017 Organic-in-Conversion NIS Price table Click here