Members of Northern Co‐operative Meat Company Ltd (NCMC), the only farmer owned beef, veal and pork processing Co‐operative in Australia, will be enjoying the financial benefits of supply chain integration after the NCMC Board resolved to pay an additional incentive of approx. $3 million to its 1300 producer members. In a newsletter sent to members last week, Chairman Mr John Seccombe advised members of the decision to reward members for their support and act as an incentive to encourage future support.
NCMC was established in 1933 by a group of farmers who wanted “a more equitable distribution of the fruits of their toil”. Over eighty years later, the Co‐operative is still focused on returning value to members by the way of incentive payments, dividends, rebates and the provision of additional member and livestock services.
Chairman, Mr John Seccombe said “the incentive payment will be distributed on the basis of $1 per head porcine and approx. $17 per head bovine for directly consigned livestock processed at NCMC facilities within the financial year ended 28 June 2015.” This payment is in addition to the bovine carcase weight incentive payments that members receive on a quarterly basis.
Although unable to release official results for FY2015, Mr Seccombe, himself a producer, noted the irony that low livestock prices over the past two years, due to drought, had the opposite effect on processing, saying “it softens the blow a little knowing our producer owned business not only has surplus to invest for future generations, but is able to incentivise member loyalty”. He highlighted the Board approved a $30 million expansion of the cold store facility, which is not only a means to lower processing costs, but also a significant signal to stakeholders that the Board is providing a long term platform for the business.
When asked if the Co‐operative were looking for new members, Mr Seccombe replied “the Board recently held over applications while we reviewed certain Board obligations but now that process is complete, we welcome members who are able to support the Co‐operative”.
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