A Decade of NIS bonus payments was announced by Chairman Chris Ford at the Christmas party on Friday night with an additional $0.30/kg payment to be made for all deliveries for the 2017 season.
This brings the final prices for 2017 to:
- $5.50kg for conventional NIS
- $6.80/kg for Organic NIS
- $5.80/kg for Organic-in-Conversion NIS
All at the industry standard of 33% saleable kernel recovery, 3% reject kernel recovery and 10% NIS moisture content.
Whilst each year presents its unique set of challenges it also provides us with an opportunity to improve on our performance and achievements as a business. In summary MPC’s 2017 report card looks pretty good as we continue to deliver on our growers expectations.
2017 report card:
- paid an industry leading price
- paid to full notional price by Christmas, now 10 years in a row and progress payments paid on-time
- shared company profits through bonus NIS payment, now 10 years in a row
- dividend of $0.30/share fully franked paid in August 2017. ($1.65/share over the last 8 years)
- savings in orchard inputs through the MPC buying group
- we help you grow and deliver more crop
- professional marketing through MMI, supporting both the kernel and NIS markets
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.
Our 2017 offer included:
- 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 MPC today on 02 6624 3900
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 increased the upfront payment by $0.30/kg with all acceptable NIS deliveries receiving $2.50/kg upfront payment two weeks from the end of the week of delivery (less levy and HWNS dehusking charges where applicable). Final payment to Notional Price was made in December for the 10th year in a row.
In 2017 MPC paid a freight subsidy as part of the NIS payment system. This was in addition to the NIS price we have paid.
This payment is made to all growers, regardless of whether they used a contract carrier or carted NIS themselves. The amount paid is radius based, reflecting the distance of your farm from MPC Alphadale (or the MPC depot you use).
The freight subsidy amounts are outlined in the table below and is based on the weight of NIS delivered at 10% MC.
|Radius from depot||Subsidy Rate per kg NIS @ 10%MC|
The following table summarises our performance:
|10 Year Average||$0.20|
• 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 delivering to MPC, please contact us on 02 6624 3900