General News
14 December, 2023
Genetics company thriving after south west move
MOVING operations to the south west has proven a boon for Genetics Australia Co-operative (GA) after posting another record-breaking year following increases in revenue and profit and the announcement of a game-changing joint venture.
Last financial year GA posted a $861,210 after-tax profit – the highest for the past two decades - from $16,829,051 total group revenue. In 2022-23 the after-tax profit surged to $2,946,533 based on revenue of $20,158,443.
The group net assets grew from $16,617,669 to $22,130,311 an increase of $5,512,642, with a positive cash position of $1,182,005.
In the recently released annual report chief executive officer Anthony Shelly and chairman Trevor Henry said more exciting developments were in store following the decision to enter a joint venture (JV) with global herd improvement leader URUS Group.
The JV proposal was announced during the 2022-23 financial year with overwhelming supported by co-operative members, and launched on July 1.
Mr Shelly and Mr Henry said the JV would be a defining point in the history of the co-operative and ensure GA remains Australia’s top herd improvement business.
They said profit came on the back of continued strong performances from the beef and dairy sectors.
In addition, finances were boosted by the completion of the sale of the company’s Parwan Park South property near Bacchus Marsh following the move of operations to Gnotuk and Glenormiston, and the continued synergies achieved after purchasing Total Livestock Genetics the previous financial year.
“The strength of our products and our reputation in the market are also important contributors to the result, and the farmgate environment has been as strong over the past three years as it has been for many decades,” Mr Shelly said.
Mr Henry said formalising the JV was the result of long-term strategies and planning stemming back at least eight years.
“It has been a true strategic journey for nearly a decade and we couldn’t be happier with the results,” he said.
“Back then we recognised that the industry was consolidating and that to remain relevant, we needed to find an international partner.”
Mr Henry said a key element of any partnership was making sure GA retained domestic breeding and production programs.
“We believed then and still do today that the Australian cow has a lot to offer grazing farmers around the world.”