Profits rise at Dewing Grain despite reduced turnover

Norfolk-based Dewing Grain increased it pre-tax profits by 45% in 2021, despite a reduced turnover.

The grain merchant made a pre-tax profit of £275,000 for the year ending 30 June 2021, a rise of £85,000 on the previous financial year.

Turnover totalled £35.5m, down from £41.4m in 2020.

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The Covid-19 pandemic created some logistical challenges during the year, but there was limited business disruption for its grain marketing and storage operations.

Dewing Grain continued to invest in developing its Yaregrain site at Cantley, with two new silos planned to increase its storage capacity, funded by loans, according to the strategic report.

The principal risk to the company is reportedly fluctuations in grain prices, caused by global markets and severe weather.

Future outlook

Chief executive Andrew Dewing said in the strategic report that government plans relating to use of land and farm payments will have an effect on the future business.

“The influence of what Defra decides is the most important use of land will have massive implications on the area sown to cereals and consequently our future,” said Mr Dewing.

“We are optimistic about the future of farming in our area, with the higher than national acreage yields and variance of crops grown.

“We believe that malting barley in particular promises our local growers a reward for the ‘Champagne region of malting barley’. The specialist malting storage sites at Aylsham, Cantley and Holkham will ensure quality and condition ideal for our partners.”