Grain co-operative maintains 2023 profitability amid continued market volatility

Against a backdrop of falling grain prices and ever-changing market conditions, British farmer-owned grain marketing and arable inputs co-operative Openfield Group Ltd has reported a profit of £2.7m for the year to 30th June 2023 (2022: Profit £3.1m).

This was achieved on the back of a significantly increased investment in the company’s own fleet of trucks, which improved both service and fleet efficiencies.

Market conditions allowed the group to capitalise on its strengths as their consumer customers sought supply assurance, underpinned by Openfield’s member commitment and loyalty. Having now doubled its own fleet size, this has also enabled improved service to its 4,000 members and provided opportunities for additional revenue streams to ensure maximum utilisation of those new assets.

Commenting on its performance, Openfield’s chairman Philip Moody said: “Against a background of increased investment in volatile times, I’m pleased to report another year of profitability. We’ve also seen excellent results in our grain marketing pools which, coupled with managed risk, continue to demonstrate the value of this marketing option in turbulent markets.”

Looking forward, Openfield says it takes its environmental responsibilities very seriously as the UK heads towards net zero by 2050. The group is committed to minimising carbon emissions for which it is directly responsible and is also developing strategies to assists its members to meet these targets. The group expects to announce future environmental initiatives and supply chain contracts having started to work with Trinity AgTech, natural capital experts, in H1 2023.

Openfield performance to June 2023:

• Profit before tax of £2.7m compared with £3.1m in 2022

• Operating costs increased by 7% to £17.4 (2022 £16.2 million)

• Group revenues increased by 20% to £806m (2022: 670m)

• Net assets (exc. pension fund) increased by 4% to £28.9m (2022: £27.8m)

• Total exported volumes were 878,000 tonnes.

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