Profits and turnover down at farmer-owned Openfield

Profits at the farmer-owned grain marketing and arable inputs co-operative Openfield Group Limited are down amid challenging market conditions.

The business made a profit before tax of £100,000 for the year to 30 June 2021, compared with £400,000 in the previous year, with group revenues down 19.1% to £516m.

Although this is a downward trajectory, it is the fourth consecutive year that the co-operative has returned a profit.

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After a poor 2020 harvest, which saw the UK’s annual wheat crop fall by 40%, the business took measures to cut costs, reducing operating costs by 17.4% to £12.8m.

This led to challenges with high levels of wheat and corn imports, a combined total of 5.2m  tonnes, and millers using about 32% grist from imported wheat compared with only 15% in the previous year – one of the largest proportions in recent years.

Oilseed rape also produced a small crop compared with prior years, with 643,000t imported, contrasted with 416,000t the previous year.

Added to these challenging conditions for businesses such as Openfield, the UK’s exit from the EU led to stockpiling in anticipation of trade disruption.

Openfield chairman Philip Moody said it was an “outstanding result’’ to have maintained profitability amid those challenges, combined with a global pandemic.

“We took pre-emptive action to reduce our costs significantly and this performance not only reflects well now, but it bodes well for the group’s future prospects,’’ said Mr Moody.

Openfield’s net assets, excluding its pension fund, has remained stable at £27.3m, compared with £27m in 2020.