Cofco returns to profit in 2021

Grain and input trader Cofco International UK returned to profit in 2021 due to a decrease in the cost of sales.

Cofco International UK made a pre-tax profit of just over £2m in the year to 31 December 2021, after making a pre-tax loss of £342,000 during the previous year.

Turnover fell by £11.52m to £199.97m in 2021, while the cost of sales fell by £15.54m to total £188.96m for the year.

See also: High premiums for UK milling wheat driven by quality concerns

The firm’s principal risks and uncertainties were outlined in its strategic report as trading positions, exchange rates, commodity price exposure, Covid-19, credit risk and contract risk.

Cofco operates storage facilities at Ipswich, Suffolk, with capacity for 80,000t of combinable crops. The terminal can handle up to 800,000t of grain annually.

It operates other sites at Harwich, Essex and Barmby Moor, Yorkshire, which have capacity for 25,000t and 50,000t of combinable crops respectively.

The company also runs a number of smaller inland storage sites.

Cofco International UK managing director Mark Dordery said in the strategic report: “The UK combinable crop harvest recovered substantially in 2021, benefiting the second half of the financial year.

“During the period, neither Brexit nor the Covid-19 pandemic had a material impact on the activities of the company.”

The company is part of the Chinese state-owned Cofco International, which trades commodities in more than 50 countries.