Farmers’ Independent Co-operative Sees Net Worth Increase By 9.3% and Declares Twelfth Consecutive Annual Profit Redistribution to Trading Members of £340,000
National Farmers’ independent co-operative, United Oilseeds Producers, has announced a profit before tax of £1,211,704 and a 9.3% rise in net worth from £9,703,248 to £10,607,081 for the financial year ending 30 June, 2017. The organisation’s turnover for the same period was £173m.
“Despite very challenging trading conditions in 2016, these are an excellent and robust set of financial results for United Oilseeds and its members,” says Chris Baldwin, Managing Director of United Oilseeds. “Especially when bearing in mind that low average yields of 2.9 tonnes per hectare at harvest 2016 negatively impacted the volume of OSR handled by the company by an estimated 90,000 tonnes,”
“In addition, a depressed oilseed rape market at the time and the suspension of neonicotinoid seed treatments against flea beetle combined to discourage some farmers from planting OSR. At harvest 2016, the rapeseed area planted fell to its lowest for five years, at 563,000 hectares, from a peak of 758,000 hectares in 2012. (Current oilseed rape plantings for 2018 harvest are estimated to be 603,000 hectares – the first increase in five years). Yet despite this trading background, United Oilseeds managed to record a rise in its net worth and secure profits before tax totalling over £1.2m for the year,” he continues.
“Consequently, we are delighted to announce a £340,000 profit share redistribution to our trading members (the twelfth consecutive annual members’ profit share redistribution made by United Oilseeds) and it means that, over the last 12 years, we will have paid back over £4.19m to our membership.”
During the same financial year, United Oilseeds also made a significant long term investment in a new comprehensive IT system in order to improve the operational and communications service it provides to members and customers, and futureproof itself for the coming decades.
United Oilseeds has the largest tonnage of oilseed rape under pool management in the UK and, once again, its pool marketing proved to be an area of outstanding success. “Our Carte Blanche Pool reached a base price of £340.01 per tonne before quality bonuses, beating our main competitor’s pool by over £20 per tonne. If you include average quality bonuses, members of the United Oilseeds Carte Blanche Pool for harvest 2016 received £367.32 per tonne for their oilseed rape,” says Mr Baldwin.
The company also traded 64,000 tonnes of other commodities including, beans, linseed, oats and peas.
“United Oilseeds is owned and run by its farmer members. Our co-operative ethos means we seek to improve the profitability of members’ individual businesses and provide them with genuine independent choice in a sector that is experiencing significant rationalisation. Our financial and pool marketing performance shows that, even in the most challenging of trading conditions, we can generate a healthy profit and deliver real commercial value to our members” says Mr Baldwin.
“Looking forward, we believe the UK planted area of oilseed rape for harvest 2018 to be 603,000 hectares (up 7.07% on harvest 2017*) which is likely to result in an expected production volume of 2,110,500 tonnes (assuming an average yield of 3.50 tonnes per hectare.)
*Based on United Oilseeds Yield and Hectare Survey
Notes to editors:
§ Membership of United Oilseeds offer key benefits such as share of profit redistribution, penalty-free Produce of Area Contracts and no surcharges on cap loads.
§ United Oilseeds is the UK’s only specialised oilseed rape marketing company.
§ United Oilseeds is an independent farmer owned co-operative with a clear purpose to continually improve the profitability of its members by providing an independent, cost effective marketing service.
§ United Oilseeds has 4,500 members across the country who trade their crops and purchase seed via the company.
§ United Oilseed Producers owns specialist seed merchant, Hubbards Seeds.
§ Farmers can join United Oilseeds as lifetime members for a one-off fee of £15.
§ United Oilseeds operates nationally and is Headquartered in Devizes, Wiltshire
For further media information, please contact:
Office: 01380 729 200
Mob: 07500 224 137
Issue date: 30 January 2018