Openfield delivers 2022 profit in volatile times
13th March 2023
As we experience volatile global grain market events, the likes of which no one has ever seen before, the British farmer-owned grain marketing and arable inputs co-operative has reported a profit of £3.1m for the year to 30 June 2022.
This was achieved as the Group benefitted from the ongoing positive impacts of its profit improvement plans implemented in the last financial year.
The year was anything but normal with the Ukraine war dominating global behaviour, both before the war started and then to an even greater extent once Russia invaded. This move saw a greater demand for grain exports as importing countries reacted quickly to protect their grain supplies.
If this challenge wasn’t enough, the UK’s haulage crisis continued, driven by a lack of capacity. This resulted in Openfield sales to its UK grain consumers being influenced by their ability to supply. Against this challenging background, Openfield also delivered excellent results in its pools which, coupled with managed risk, continued to demonstrate the considerable value of this marketing option in turbulent markets.
Commenting on its performance, Openfield’s chairman Philip Moody said: “The challenging market conditions played to Openfield’s strengths as our consumer customers sought to gain supply assurance. We were able to provide this which was underpinned by our members’ commitment and loyalty. Looking forwards, our member commitment provides us with enhanced opportunities for us to continue to deliver value.”
To address the haulage crisis, Openfield has grown its own fleet by 40% and by January 2024 it will have more than doubled the size of its fleet. By then it will be hauling around 50% of all movements using its own fleet. In doing so the co-op believes it will further improve grain collections and input deliveries to its farmer members and grain deliveries to consumer customers who manufacture some of the best know British food and drink brands.
Openfield performance to June 2022:
- Profit before tax increased to £3.1m compared with £0.1m in 2021;
- Operating costs increased by 27% to £16.2million (2021 £12.8 million);
- Group revenues increased by 30% to £670m (2021: 516m);
- Net assets (exc. pension fund) remained stable at £27.8m (2021: £27.3m)
- Total exported volumes were 554,000 tonnes.
