UK farmer-owned cooperative announces record turnover

 Fram Farmers is a not-for-profit farmer-owned cooperative based in Suffolk
Fram Farmers is a not-for-profit farmer-owned cooperative based in Suffolk

A UK farmer-owned cooperative based in Suffolk has reported its highest ever annual turnover of £195 million.

Fram Farmers Group, an inputs purchasing and crop marketing cooperative, reported record results at its Annual General Meeting.

During the financial year to 30 June 2018, the cooperative achieved its highest-ever annual turnover, £195 million (£179 million: 2016/2017).

Purchasing turnover increased by 11.3% and included organic growth of 8%, which reflects the fact that members trusted the cooperative with an increasing percentage of their business.

Fram Farmers’ pre-tax operating surplus increased to £201,000 (£87,124 deficit: 2016/2017), while Framtrade Ltd, the Group’s wholly-owned retail subsidiary which supplies oil and gas products to over 4,000 members of the public and small businesses, had an exceptional year, recording a pre-tax operating profit of £464,309 (£266,567: 2016/2017).

The combined £665,523 surplus (£184,362: 2016/2017) was the highest in Fram Farmers’ 58-year history and will contribute to the cooperative’s future development.

Formed by 23 local farmers who first met in Framlingham, Suffolk on 17 March 1960, Fram Farmers remains a not-for-profit farmer-owned cooperative.

Still based in the town, it now provides the purchasing, grain marketing and administrative function for more than 1,200 farming businesses who collectively farm over 270,000 hectares throughout the UK.

Announcing the results, Richard Anscombe, Fram Farmers Chief Executive, stated: “Even the largest farming businesses is unlikely to be able to replicate what we provide for a very cost-effective annual fee, and consequently members who are fully committed find that they are significantly better off sourcing all their farm inputs through us.

“We are continually benchmarking our performance against the market, and we look for ways to provide further benefits and add value to the service we provide."

Mr Anscombe added: “The Directors of Fram Farmers appreciate that choppy waters lie ahead as we approach Brexit and have considered the future for agriculture in detail.

“Appreciating that during uncertain times members need the comfort and security of belong to a cooperative that they can trust absolutely to act in their best interests, Fram Farmers is implementing a three-year business plan that will provide even greater benefits," he said.

Mr Anscombe said the cooperative will now focus its attention on people under 40-years-old to bring about "future leaders" for Fram Farmers.