Norco - Building Economic Resilience

Building Economic Resilience

Strength and Stability

Norco is committed to building its financial strength and stability, which includes enhancing the economic vitality and diversity of the rural and regional communities in which we operate, securing a sustainable supply chain and developing win-win partnerships in the markets that we serve.

As an established, vertically and horizontally integrated agricultural co-operative, Norco is in a unique and strategic position to leverage its scale to achieve excellent financial returns for the business and our shareholders and to support our communities by:

  • Maximising our provision of rural requirements
  • Maximising our management of farm outputs and converting these into valued ingredients both up and down stream
  • Identifying and securing sustainable sources of supply
  • Ensuring quality control and consistency to market
  • Translating end-user requirements into product specifications both on and off farm
  • Identifying processing and infrastructure needs and opportunities across the supply chain
  • Securing needed investment for the future.

Member benefits and payments: More than just the price of milk

Norco’s farmer members receive a range of payments and indirect economic benefits. Total member returns comprise payments for milk supplied, dividends and a supplier patronage scheme reward. In addition to these direct financial returns, there are indirect financial benefits that accrue to members including the provision of credit facilities and reduced financial risk. Norco also provides its members with training and extension services, advice from agronomists and field officers, study tours, and special assistance in times of need such as natural disasters.

Total member returns over the past six years have ranged between 52.19 and 57.22 cents per litre comprising mostly milk payments, with dividends and supplier patronage rewards generally making up less than one cent per litre of the total return.