Farmers’ independent co-operative United Oilseeds Producers has announced a profit before tax of £1.2m and a 9.3 percent rise in net worth for the financial year ending 30 June, 2017.
Despite what the farmer-run co-operative calls "very challenging trading conditions" for 2016, net worth rose 9.3% from £9,703,248 to £10,607,081.
In a statement, it said that low average yields of 2.9 tonnes per hectare at harvest 2016 negatively impacted the volume of oilseed rape handled by the company by an estimated 90,000 tonnes.
In addition, a depressed OSR market at the time and the suspension of neonicotinoid seed treatments against flea beetle combined to discourage some farmers from planting oilseed rape.
“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,” says Chris Baldwin, Managing Director of United Oilseeds.
“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 adds: “Consequently, we are delighted to announce a £340,000 profit share redistribution to our trading members and it means that, over the last 12 years, we will have paid back over £4.19m to our membership.”
United Oilseeds has the largest tonnage of oilseed rape under pool management in the UK.
“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.
