Payments totalling £303,000 are being to members of United Oilseeds as the leading farmer-run cooperative makes its biggest ever distribution of surplus funds.
The payments, which for individual farmers range from £10 to £4,223, result from a very strong financial performance in the accounts for the year ending June 2006 (and reported last autumn) which saw United Oilseeds Marketing achieve a pre-tax profit of £849,000 – a 143% increase on the previous year.
"This increased the company's net worth £596,000 to £1.44 million, boosting the net worth of the parent company – United Oilseed Producers – from £896,000 to £2.72million," explains United Oilseeds Managing Director Chris Baldwin. "With our reserves back to required levels, we have been able to make this record redistribution."
And the Board of United Oilseeds do not see this as a one-off. Subject to financial performance, it aims to make a payment of surplus funds back to shareholders each year from now on.
To be eligible for a share in the distribution, farmers need to be a member – which requires a one-off payment of £15 for life – and to have traded with United Oilseeds during the trading year. Distribution of the surplus is based on tonnage traded during the past financial year, either directly through United Oilseeds, or through one of its agents.
"The fact that United Oilseeds membership has increased by 25% in the current year, reflects the importance that farmers place on dealing with organisations with a sound financial base," says Mr Baldwin.