Related Party Transactions

12 Months Ended

Sep. 30, 2013

Related Party Transactions [Abstract]

Related Party Transactions

13. Related Party Transactions

MWI Co., our subsidiary, holds a 50% membership interest in Feeders’ Advantage that is accounted for as an investment using the equity method. Sales of products to Feeders’ Advantage, which are at our cost, were $68,355,  $61,873 and $55,185 for the fiscal years ended September 30, 2013, 2012 and 2011, respectively. MWI Co. charged Feeders’ Advantage for certain operating and administrative services of $1,079,  $1,008 and $919 for the fiscal years ended September 30, 2013, 2012 and 2011, respectively. Our President and Chief Executive Officer and a member of our board of directors are each members of the board of managers of Feeders’ Advantage.

MWI Co. allows Feeders’ Advantage to use its cash management system to finance its day-to-day operations. At any given time, the outstanding position used in the cash management system may be a receivable or payable depending on the cash activity.  A receivable balance bears interest at the prime rate. The interest due on the outstanding receivable is calculated and charged to Feeders’ Advantage on the last day of each month. Conversely, to the extent MWI Co. has a payable balance due to Feeders’ Advantage, the payable balance accrues interest in favor of Feeders’ Advantage at the average federal funds rates in effect for that month.  As of September 30, 2013 MWI Co. had a payable balance to Feeders’ Advantage of $777.  As of September 30, 2012 MWI Co. had a receivable balance from Feeders' Advantage of $62.