2019 Price Offer

We welcome all growers to supply MPC and experience the benefits we have to offer

To View our price Tables Click on the following links:

Another harvest season is upon us and I am pleased to advise that MPC’s outlook for the industry remains positive. The dry weather of the growing season has been a concern but considering all factors the crop quantity and quality appears to be reasonable. With the edge of cyclone Oma touching the main growing regions, crop is beginning to fall and the harvest season is rapidly commencing.

The demand globally for MPC’s high quality products continues with many customers seeking prompt shipment of 2019 kernel and nut-in-shell (NIS) to ensure their products keep up with strong consumer demand.

MMI continues to develop relationships throughout the supply chain and our balanced approach to the kernel and NIS markets remains in place. This work is paying dividends for customers around the world who share in our ideology of sustainable markets and value chains. The focus for these customers is working with a company that has a reputation for quality, quantity and reliability of supply. This has resulted in price stability for both customers and growers which in turn allows for deeper market development.

Our strategic investment plan has seen some significant projects undertaken in the last 12 months. We have installed a 600kW solar system that is delivering significant amounts of energy for the factory and will reduce energy costs for many seasons ahead. The additional drying and processing building will add to our existing capacity and allow us to handle larger crop volumes into the future while maintaining optimum product quality and shelf life. Our ongoing focus on continuous improvement has enabled MPC to deliver strong returns to our growers and keeps MPC at the top of the global macadamia industry.

MPC’s strong financial performance continues, this is published and transparent. The company has a strong balance sheet and low debt which puts MPC in a strong financial position. This is important to growers with the uncertainty seen in the processing sector in recent times.

With all of this in mind, I’m pleased to announce that our 2019 prices will be:

  • Conventional NIS $5.40/kg
  • Organic NIS $6.50/kg
  • Organic-In-Conversion NIS $5.70/kg

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

Our 2019 offer includes:

  • Commercial grade at Premium prices
  • Free dehusking and sorting for deliveries with up to 10% NIH and 5% Gross Rejects
  • A radius based freight subsidy
  • $2.50/kg upfront payment, 2 weeks from the week of delivery
  • Anticipated final payment to the notional price by Christmas (cash flow allowing)

To View our price Tables Click on the following links

Our pricing is simple and transparent – our price table steps are equal (up and down by KR%) and through our grower friendly lab we pay you for all of your saleable kernel. We promote only a 33% SKR and 3% Reject KR price as this is the long term published industry average. Whilst other processors may promote 33,2,1 prices or the highest valued consignment, our commitment is to honesty and integrity.

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 receive the maximum value for your entire crop.

2018 Final price – Over a decade of paying a NIS supply bonus

2018 was the eleventh consecutive year that MPC has delivered a final price above the notional price. Another strong financial performance during 2018 resulted in over $5.2M being returned to growers in the form of a $0.40/kg NIS bonus payment. The ongoing re-investment in MPC’s factory continues to deliver efficiency gains and provide the market with superior quality products.

Our final prices for 2018 were:

  • Conventional NIS – $5.60/kg
  • Organic $6.90/kg
  • Organic-in-conversion $5.90/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 11 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 NIS bonus 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
2017 $0.30
2018 $0.40
11 year average       $0.22 /kg

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.  All acceptable NIS deliveries will receive a $2.50/kg upfront payment, 2 weeks from the end of the week of delivery (less levy and 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

MPC will once again pay a freight subsidy as part of the NIS payment system.  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, based on 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.

Radius from depot Rate per kg NIS @ 10%MC
0-50km 3.0c
50-100km 3.7c
100km+ 6.0c

The freight rebate will be paid as part of your NIS payments.

Delivering all your crop increases the final price

You can help maximise any extra payments by assisting us to increase the volume of NIS that we process. Receiving all of your NIS allows us to increase factory throughput and significantly reduce the costs per kg. The extra money generated is then returned to you as additional NIS payments as we have done for the past 11 years.

Processing non-shareholder crop helps to increase the final price

To continue to provide improved returns, we are actively seeking to purchase NIS from growers who don’t currently supply. Our current shareholder / suppliers are our strongest advocates and we seek your support in helping us to secure this extra crop. Please talk to your neighbours and friends about the great receivals system, payment terms and improved returns growers receive by delivering to MPC. We have included with this letter a flyer that outlines our 2019 offer that you can pass along to your neighbours and remember you don’t need to be a shareholder to deliver.

Our grower services team of Kevin Quinlan, Mark Whitten, Jim Patch, John Allen and Merv Dudgeon are available to assist you in this endeavour.

Dividends

The 2018 dividend payment in August of $0.40 fully franked per share was another strong result and a continued demonstration of the company’s commitment to reward growers who have invested in the company.

2019 Reject Limit

MPC has introduced a reject limit of 7% Reject kernel recovery for 2019, above this limit we reserve the right to reject or revalue consignments. We understand that almost all growers will produce some NIS in this Reject kernel recovery range, particularly early in the season, and our intention is not to impose penalties on growers for delivering a small percentage of their crop in this range.

MPC is focused on producing high quality macadamia products with a long shelf life. Our delivery system which has been in place since 2012 has provided significant improvements in the characteristics that are important to consumers those primarily being taste, flavour and shelf life.

If a grower repeatedly delivers a high percentage of their crop above 7% Reject kernel recovery we will work with the grower to resolve the root cause. If there is deemed to be a serious and ongoing issue for which corrective action is not being taken, MPC reserves the right to reject or revalue these consignments.

The aim is to discourage ongoing, poor farm practices and is another initiative introduced by MPC to improve the quality of product reaching our consumers and to continue to drive demand in the face of growing international supply. Our message to growers remains clear, look after the quality of the crop while it is on the tree, harvest frequently and deliver your crop to MPC as quickly as possible.

2019 Dehusking arrangements

This season MPC will again have dehusking services available for growers through the Summerland House with No Steps (HWNS) and Nimungi Pastoral Dehusking Service. Both of these services will be charged at $0.12/kg of input weight. The dehusking capacity of these facilities is limited, so please contact Kevin Quinlan at MPC to discuss your needs for the season.

2019 Season opening function

To kick off the 2019 season, we are holding a season launch on the 21st March. As we know it is a busy time of the year for you, we have made it a short but informative and fun event. There will be updates on the current markets, a few farm innovations, a great lunch and the Toro Challenge – with all proceeds going to the Rescue Helicopter Service. We will be sending out invitation details soon.

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 35 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.

On behalf of the MPC team I wish you all the best for the 2019 harvest season and we look forward to continuing the strong partnership we have with growers through the year.

To View our price Tables Click on the following links

We welcome all growers to supply MPC and experience the benefits we have to offer