Namoi Cotton Co-operative has informed that production is going to suffer due to draught as it registered 11 percent decrease in its profit for the first half with net profit after rebate at $24 million, down from last year's $26.9 million.
The company informed that it was ready to meet the challenge and will be able to sustain profit levels. It expects to gin and market around 475, 000 bales in 2007.
Co-operative said that first half results were good considering factors like hot weather, low cotton prices, reducing trading margins and higher costs. In spite of low production, the company was able to enhance efficiency and market share.
The marketing volumes for 2006 crop stood at 700, 000 bales, a decline from 721, 000 bales in 2005 but contradictorily market share increased by 2.1 percent. The earning increased to $241.13 million an increase of 17 percent during the first six months to August, 31, 2006.
marketing@alchempro.com
