Farmers’ collective Grainco has grown turnover and profits amid less volatility in the grain market.
The Tyneside-based group specialises in seed production, drying, storage, logistics and trading of Ƶ grown grain and is said to be the largest farmer-owned business in the North of England and Scotland. It handles around one million tonnes of grain, oilseeds and pulses every year, coming from farms between Hull and Aberdeen.
Newly published accounts for the company show turnover increased to £261.1m in the year to the end of June, up from £257.9m the year before. And operating profits rose to £4.78m during the same period, from £3.98m previously. Meanwhile, pre-tax profits fell only slightly from £5.32m to £5.04m.
Grainco managing director Gary Bright described it as a solid set of results which delivered on all of the company’s key objectives.
The 2023/24 grain marketing year which the accounts cover was said have been less volatile than the previous year, with London May 24 wheat futures trading within a £68 per tonne band from a high of £226 to a low of £158 from July 1, 2023 until its expiry date, with abundant global stocks available. The market price continued to be moved by global conflicts.
But Grainco said its robust balance sheet – which includes net assets of £31m – had allowed it to continue trading in a “normal manner” and offer farmers sufficient liquidity in challenging times. Writing in a review accompanying the accounts, Grainco finance director Sue Duck said: "All segments of Grainco’s diverse operations performed well which all aided in delivering an excellent profit for its shareholders and in further increasing its balance sheet. Grainco’s excellent financial performance was matched with market leading pool results.
“Grainco’s large-scale pelleting plant continued to perform well along with its storage assets at the Wilton and its seed processing plant and storage complex at Piercebridge. All of Grainco’s spare land, houses, retail units and rental offices remain fully occupied on long-term agreements.
“The company continues to expand its logistical services in England and Scotland, handling imported products on behalf of a growing number of clients.
“The company continues to explore new business ventures which would add value to its farmer clients and benefit the entire food chain and energy sector.”
Grainco is part of the Tynegrain Ltd cooperative which has access to 200,000 metric tonnes of grain, oilseed and pulse storage at a six-acre site at the Port of Tyne which features a deep water berth and allows for export globally. Farming members rent space in the company and own a share in the company.
