25/02/2015
Media Statement
GROWER BODY PROVIDES 31.54% DIVIDEND TO MEMBERS
Embargoed to Wednesday 25th February 2015
At a time when most grower organisations are struggling to stay afloat financially, the Council of Grain Grower Organisations (COGGO) has been able to provide dividends to its members.
Total returns to members since COGGO’s inception have been almost $4 million with the most recent dividend of 31.54% being returned to grower members for 2014.
COGGO is a public company formed at the initiative of a group of Western Australian grain growers. Originally the organisation was concerned about inadequate resources being allocated to plant breeding and biotechnology in Western Australia. COGGO therefore initially invested in having a greater say in breeding crop varieties for Western Australian grain growers. Since then the crop breeding sector has matured and is now well supported by private sector breeding companies that are tuned into the needs of Western Australian Growers.
In 2012 COGGO moved to be a R&D funder of innovative projects that benefit the grain industry and improve the profitability of grain growers in Western Australia.
COGGO Chairman Mr Chris Wilkins said the keys to understanding how COGGO works are:
* voluntary contributions;
* investments are made by the COGGO Board which is comprised of elected WA grain grower members;
* investments are in fast-tracking of local innovative projects of direct benefit to members and grain growers in WA; and
* payment of annual dividends to grower members equal to Australian Tax Office refunds related to GOGGO funded research projects.
Chris Wilkins said “Since 2012 twenty eight projects have been funded to a total of over $1.4 million.”
Mr Wilkins said “Many projects are too small to justify submitting a proposal to the Grains Research and Development Corporation (GRDC), or the benefits are confined to a local area in WA which may not meet national or regional funding priorities. The COGGO R&D fund has supported locally focused projects and has also been able to respond quickly to provide catalytic funds for projects. These start–up, “proof of concept” projects could then be further developed into larger R&D funding proposals to GRDC or a commercial partner.”
He added that “the Western Australia's Grain Industry makes a vital contribution to the economy of Western Australia. To keep it that way farmers must have access to high quality research and development and the COGGO Research Fund is used to fund projects which demonstrate a clear benefit to the WA grower.”
The COGGO Research Fund is financed through a voluntary levy collected, with the cooperation of grain acquisition and marketing companies, from Western Australian grain growers who are members of COGGO. COGGO members voluntarily contribute 0.5% of their net farm-gate returns to fund research and development projects. All WA grain growers are eligible to become members of COGGO.
The COGGO Ltd Board intends to offer an annual dividend to members for an amount equal to the R&D refund it receives from the Australian Tax Office based on the investment in innovative R&D projects. In 2014 the dividend was 31.54% of Member contributions. The COGGO Research Fund also prioritises local innovative research and development projects that have the potential to generate intellectual property and possible future income streams for the company.
Further information is available from the COGGO Ltd Company Secretary, Mr Hugh Lennerts, at email hugh.lennerts@coggo.net.au or by phoning 08 9310 2636.
Media Contacts:
Chris Wilkins
Chair COGGO Limited
Phone: 0427 940 925
Email: cwilkins@synergyco.com.au
Hugh.Lennerts
Company Secretary COGGO Limited
Phone: (08) 9310 2636
Fax: (08) 6102 3757
Email: hugh.lennerts@coggo.net.au
PRESS NOTE:
The COGGO research fund targets Western Australian specific research gaps that may not be suitable for funding by the Department of Agriculture and Food Western Australia or the Grains Research and Development Corporation which are the major funders of grain industry research and development.
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COGGO Research Fund –
Investing in innovative research and development projects for the Western Australian grains industry.