Mole Valley Farmers returns to profit after £5.8m turnaround

Mole Valley Farmers has swung back into profit after two loss-making years, signalling a major turnaround for the farmer-owned co-operative.

The business posted a £500,000 operating profit for 2024/25 — a £5.8 million turnaround on the previous year following a period of heavy losses.

The recovery is significant for farmer members, who rely on the co-op for feed, supplies and market stability.

Chief executive Jack Cordery described the result as “a deeply encouraging step forward”, but said the business is still working towards long-term sustainable profitability.

He said: “The decisive measures already taken have strengthened resilience and improved overall performance.”

The turnaround follows a difficult period marked by high inflation, rising wage costs and volatile commodity markets.

In response, the business carried out a review of spending and focused on cutting costs and improving efficiency.

It has also introduced AI tools to cut admin and free up staff time.

Upgrades to ordering systems, logistics and stock management have helped improve efficiency and customer experience.

Despite ongoing pressure on retail, Mole Valley Farmers’ stores continued to trade steadily, supported by demand for core agricultural products.

The business has also strengthened its supply chain, particularly for feed raw materials.

A long-term agreement with Cattedown Wharves in Plymouth, alongside work with Appledore docks, has increased storage capacity and improved supply resilience.

This move helps protect farmers from price volatility and supply disruption.

Mr Cordery said: “By importing raw materials directly from manufacturers, we have reduced reliance on intermediaries, improved pricing stability and increased our ability to manage supply fluctuations.”

He added that quayside storage allows the business to “buffer supply at critical points in the year”, reducing risk during peak demand and global uncertainty.

Elsewhere, the organic mill at Uffculme has outperformed expectations.

Further investment is planned at the Huntworth and Dorchester mills.

Chairman Stephen Bone said the plans “underlines our determination to improve the productivity and output while maintaining quality and competitiveness”.

The outlook remains challenging, with rising costs and global instability continuing to weigh on the sector.

Pressures include increases to National Insurance, changes to the National Living Wage, persistent inflation and ongoing conflict in the Middle East.

However, Mr Cordery said the business is entering the new financial year in a stronger position.

He said: “Our operational model is designed to deliver value to our Farmer Shareholders, members and customers through competitive pricing, reliable supply chains and long-term investment in the sectors we serve.”

“There is more to do,” he added, but said the business now has “every confidence for the future”.