customer base is heavily concentrated in Mid Canterbury<\/a>, which is dominated by dairy farming as well as arable.<\/p>\nAnother hit<\/p>\n
In its 2026 annual report, it said the board had decided to fully impair the system because it was no longer fit for purpose and ongoing development and maintenance costs posed a risk to the business.<\/p>\n
\u201cThe system was not built to match the current pace of technology and detracts from Ruralco\u2019s core function of being a farm supplies business.\u201d<\/p>\n
Rapid changes in technology since its last impairment, with a greater understanding of the limitations of the system, meant a full write-off of the system was \u201cjustifiable and a responsible approach at this time\u201d.<\/p>\n
Income of $1.4m had not been realised for the past three years, along with expenses valued at $800,000 for underpaid GST over the same period.<\/p>\n
This year\u2019s impairment pushed the co-op to a net loss of $2.5m, down from a profit of $1.25m last year, with adjusted earnings before interest, tax, depreciation and amortisation steady at $900,000.<\/p>\n
It had turnover of $265m, up from $259m in 2025. It did not pay a rebate.<\/p>\n
Chair David Carter and chief executive Tony Aitken have simplified the co-op\u2019s operations, returned to its core business and focused on Mid Canterbury.<\/p>\n
Carter and Aitken said the second trading profit was further evidence its \u201cdisciplined re-set of the business is working, as Ruralco maintains a position of fiscal stability and strength, building on last year\u2019s positive financial result\u201d.<\/p>\n
\u201cWe are committed to lowering the cost of your farm inputs, with our emphasis being on lowering prices for everyone throughout the year rather than achieving a profit for a rebate.\u201d<\/p>\n
It had become more price-competitive, an approach that also encouraged competitors to lower prices.<\/p>\n
Ruralco\u2019s debt dropped $2m to $8.3m, as it pushes to become debt-free.<\/p>\n
Aitken said the past 12 months had been marked by continued efforts to minimise expenses, reduce debt, and put strategies in place to increase sales and profitability as part of its re-set of the business for long-term sustainability. <\/p>\n
\u201cThe result is a positive sign of continued confidence in the Mid Canterbury based co-operative.\u201d<\/p>\n
The card<\/p>\n
Like other rural merchants, Ruralco offers a credit card to its customers with discounts offered at certain retailers.<\/p>\n
Carter and Aitken said during the year, there had been a concerted effort to return Ruralco to being a shareholder-owned business.<\/p>\n
\u201cOver the past couple of decades there have been initiatives that have allowed people to have a Ruralco Card without becoming a shareholder. As we focus on providing maximum benefits for our shareholders, it has been pleasing to see cardholders choosing to convert and become shareholders.\u201d<\/p>\n
The pair said while it would continue to focus on managing expenses, areas of expenditure had been delayed and needed to occur in the coming year.<\/p>\n
\u201cThese will be funded from cashflow rather than from borrowing. This includes an upgrade and the implementation of a future-focused ERP (Enterprise Resource Planning) system which will support the integration of our core business processes in one unified platform.\u201d<\/p>\n
That replaced its current system which was \u201csignificantly outdated, and has hindered data capture and reporting across the whole team\u201d.<\/p>\n
Farmlands is due to report its results before the end of the month.<\/p>\n
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