This week WAMMCO announced its second best annual profit of $2.7 million for the past financial year after paying qualifying producer members a pool bonus of $1m.

The result was an improvement of $1.3m on 2006-07 profit of $1.4m.

The member pool bonus was maintained at 5pc of the value of livestock supplied by qualifying members for the fourth consecutive year, resulting in a distribution of an additional $1m.

Mutton was also included in the pool distribution for the first time this year with an average payment of $1.07 a head.

The average bonus payment for qualifying lambs was $3.37 a head with a top figure of $5.30 a head.

WAMMCO has distributed a total of $3.8m to members over the past four years in the form of additional bonuses.

Pre-tax net profit was achieved on reduced turnover of $89m ($91.1m in 2006-07), mainly due to the lower numbers of lamb processed in the first half.

The fall in revenue was partially offset by an increase in sales revenue for extra value added production.

WAMMCO paid an average price per head to lamb producers of $65.55, down marginally from $65.90 the previous year.

However the average weight per head of lambs processed was slightly lighter at 21.04kg , down from 21.3kg the previous year.

Mr Griffiths said while the year had been challenging for members, customers and WAMMCO itself, the result was driven by a higher throughput of capital or breeding stock.

He said this could mean higher sheep prices next year, but lower numbers for processors to source.