Trading Rebates
Trading rebates are the traditional method co-operatives use to distribute any profits to members. Rebates are based on patronage and can be in the form of cash, shares or a combination of both. Trading rebates are treated as income to the producer and are taxable.
Rebates are determined at the end of the financial year when the results of the co-operative are known.
At a recent meeting the Co-operative's Board finalised the policy that will be applied in determining any rebate entitlement members may have in the current 2004/05 year. There are two important requirements that will need to be met.
To qualify for any trading rebates members will have to hold participation units covering the lambs they supply. Foundation shareholders have been allocated participation units based on one (1) participation unit for each eight (8) shares held eg a member holding 800 foundation shares has 100 participation units covering 100 lambs.
Members may deliver more lambs than they hold participation units but the additional lambs will not qualify for any rebates. Members may increase their participation units by subscribing for additional shares on the basis of paying $1 for the first of 8 shares, with the remaining 7 being funded from future rebates eg if you have participation units for 100 lambs (ie you hold 800 foundation shares) and you wish to deliver 200 lambs and be eligible for rebates you must pay $100 for 100 subscription shares. The remaining 700 will be issued from future rebates. If a member fails to deliver sufficient lambs in any year to generate the necessary rebate their participation units reduce.
Rebates will also only be paid on “over-the hooks” traded lamb purchased from members under WAMMCO’s weekly price schedule. Other forms of purchase eg on-farm, guaranteed price contracts, saleyard are excluded.
If you wish to confirm the participation units you have or require clarification on any of the above please contact the co-operative direct or any member of the Board.
KOJONUP’S KIWI FARMER
The goal of owning an Australian sheep farm in a solid area, has brought some notable achievements along the way for New Zealander, Stacy Williams, who started farming near Kojonup ...
Read moreMEAT PROCESSORS IN NEW ROLE
Twelve months as a Director of WA’s Meat Marketing Cooperative has given North Stirling sheep and lamb producer Bill O’Keeffe some important new perspectives on the ...
Read moreSTIRLING FOCUS ON PRIME LAMBS
Promising seasonal conditions and improving sheep numbers in the Borden/Stirling Range area have sparked optimism for higher levels of lamb sale activity in the area this season, prompting WAMMCO ...
Read moreDawson Bradford retires after 20 years
Guiding WAMMCO‘s early years as chairman, joining the fledgling WA meat cooperative to membership of global marketer, the Australian Lamb Cooperative, and instigating LAMBEX, Australia’s first ...
Read moreWAMMCO's new director elect, Hamish Thorn of Kojonup
A rare opportunity for WA’s prime lamb producers to benefit from a direct link with the processing and marketing side of the meat industry, is a unique feature ...
Read more
