Grain merchants show mixed fortunes in company accounts

Financial accounts for the major UK grain merchants indicate that margins have tightened in recent years, with profits generally trending slightly down.

Frontier Agriculture continued to dominate in terms of scale, with a turnover of £1.76bn for the year ending June 2024, and a profit before tax of £40m.

ADM Agriculture and Saxon Agriculture both posted minor losses in the most recent financial years, despite high sales volumes.

Meanwhile, major traders including Wynnstay, Cefetra, and Openfield reported reduced profits compared to the previous year.

See also: Malting barley premium weakens with subdued demand

Mid-sized regional firms generally performed within reason, achieving relatively strong profit margins in relation to turnover.

The following table was compiled by grain industry adviser and experienced trader Richard Whitlock, as part of his regular industry newsletter.

For enquiries, email richard@richardwhitlockltd.co.uk.

The table uses information made publicly available by Companies House – “errors and omissions excepted”.

It provides an annual summary of how each of the companies fared, and shows UK grain traders with more than £1m in net assets.

Mr Whitlock told Farmers Weekly that merchant prosperity typically follows farming prosperity for the combinable crops sector.

He noted that the reporting period for some of the companies dated back to 2023, which may make the sector’s performance appear stronger than it currently is, as crop sales are facing a challenging period at present.

Mr Whitlock added that a lot of the companies included were not solely grain traders and many have a diversified portfolio covering seed, chemicals, fertiliser and feed manufacturing.