9 INTEGRATED ANNUAL REPORT 2022 more critically and we therefore need to be prepared and ever flexible. Our restructuring process has progressed well with all our mills now under the NCT umbrella, resulting in tax efficiencies, management streamlining and other benefits. The structure committee is now looking at relinquishing control of some of our less profitable farms, in line with the policy to maintain NCT Tree Farming as an efficient and strategic reservoir. Other properties under our subsidiaries will also be brought into the NCT fold. This will have the benefit, as with the mills, of allowing NCT to distribute profits generated, to our members, in a tax efficient manner. From a financial perspective, NCT has performed admirably well despite the second year of the pandemic. We were able to maintain our timber prices to members and towards the end of the year, even managed a small price increase. NCT timber prices continue to be the benchmark against which the domestic market measures itself. While it is critical for our members that we extract maximum value from the value chain, the board remains very aware of the importance of maintaining an adequate financial reserve, in accordance with the NCT reserve policy. It was due to this reserve, that we were able to assist members during the first year of the Covid-19 pandemic, by ensuring the stability of mill delivered prices. Similarly, it must see us through potential future disruptive “Black Swan” events and protect member sustainability. The co-operative achieved a turnover of R2.76 billion and a profit of R55.7 million before tax for the financial year ending February 2022. Looking forward, NCT is committed to improving the US Dollar price received for our wood chips. This, despite a world surplus of pulp material and depressed international prices. We need to call on our ability to be reliable, sustainable and flexible to our clients, providing them with a good quality product when they require it. Together with our long-term relationships with most of our customers, and our extensive experience in wood chips, we are well positioned to secure advantageous global market returns for our members. As far as market risk exposure is concerned, our Chinese customers proving to be stable purchasers of NCT wood chips, and our domestic market exposure to strategically important niche non-paper related products, both contribute very positively indeed. The biomass market to which we contribute further eases our market risk. The Board of NCT functions efficiently and with specific focus. With the present composition of board members, a wealth of knowledge and experience is available to provide management with maximum support, as and when required. Board members have taken on a range of responsibilities enthusiastically within the various sub-committees, efficiently spreading the workload and ensuring optimal participation. It is a pleasure for me to have that kind of support and I am grateful to every board member for their commitment towards serving our members. Vern Schefermann has slotted into his new role as vice-chairman with commitment and dedication. Like his predecessor, James Stegen, he has thrown his weight behind me. I am buoyed by his support. My thanks to all board members for your committed support and invaluable insights throughout the year. My appreciation to your spouses and mine, for the support they give to us during our time spent on NCT business. Then to Danny Knoesen, and his management team and staff, thank you for the committed dedication to the task. PHILIP DAY | CHAIRMAN
RkJQdWJsaXNoZXIy MjgyNjA0