Farm supplier NWF Group reports lower profits

Agricultural supplier NFW Group has reported slightly lower profits after tough feed and fuel market conditions last year.

Pre-tax profit fell 9.4% to £7.7m in the year ending 31 May 2014, while revenues dropped £8.1m to £545.8m.

The company’s feed and fuel businesses suffered weaker profits after a warmer winter and spring lowered demand for its products.

But the food operations – that stores, packs and delivers consumer goods – recorded a better return despite the supermarkets’ battle for market share in a subdued grocery sector.

See also: Farmers told to seek feed cover as prices ease

NWF chairman Mark Hudson said the company had performed strongly despite adverse market conditions.

NWF’s feed business supplies about 4,300 British farmers and the group purchased competitor SC Feeds in November 2013.

Demand for ruminant feeds was 4.7% lower on the year, due to better silage quality and a warm winter and spring.

Operating profit in the feed business fell 13.2% to £3.3m but revenues were boosted by underlying growth and the SC Feeds acquisition.

NWF chief executive Richard Whiting said he remained confident about the year ahead, even as farm commodity prices were falling and most milk processors were announcing cuts.

He said the business was also focusing on offering advice and value-added products to farmers.

“We have seen on early silage samples there are high volumes but the nutritional value is not as good, which is reasonably good for our feed volume,” he said.