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“The higher input cost and our inability to immediately pass these increased costs on to our customers resulted in a marginally lower operating profit during the year under review.

“The company declared an increased dividend of four cents per share compared to last year’s 2.5 cents per share, resulting in an outflow of $0.32m compared to $0.20m last year,” Mr Punja said.

Rice Company Fiji Limited

Rice Company Fiji Limited chairman Gary Callaghan highlighted in his report to the shareholders that sales during financial year 2017-18 reduced by six per cent to $27.83 m from $29.56 m a year ago.

“The net profit for the financial year under review was $2.54 m in comparison to $3.19 million in the previous financial year.

“The reduction in profit was mainly due to lower revenues and an upward revision in ‘Management and Support charges’ levied by FMF Foods Ltd to defray the production, selling and administration support charges which was last revised eight years ago. “The company declared an increased dividend of 35 cents per share compared to last year’s 30 cents per share, resulting in an outflow of $2.1m compared to $1.80 million last year,” Mr Callaghan said.

Rice production

On the rice production front, world paddy production is forecasted to grow by 1.4 per cent in 2018 with production increase mainly from Asia, including Vietnam and Thailand which predominantly supply rice to Fiji.

Global rice utilisation is forecasted to grow marginally at one per cent in year 2018/19 with the increase linked to a marginal increase in per-capita consumption.

However, the international rice prices have been on an upward movement mainly due to higher import demand from Asian buyers mainly Indonesia and Philippines, United States and Europe.

Further, shortfall of Thai fragrant rice (Jasmine) production has also caused a price increase in that segment. Looking forward, he said: “We expect a revenue and profit similar to the year under review, though the overall sales volume is expected to be lower”. However, he said they are constantly looking for opportunities to ride the growth cycle despite increased competition locally. “I would like to thank our management team, our dedicated employees, suppliers, customers, partners and shareholders for their unabated support and faith in the company.

“We look forward to your continued support in the coming years.”