Openfield maintains 2024 profitability and further improves service

Openfield Group Limited has reported its results to 30 June 2024.

Against a backdrop of poor planting conditions in Autumn 2023 and a large carry forward of crops into 2024, the British farmer-owned grain marketing and arable inputs co-operative has reported a profit of £0.8m for the year to 30 June 2024 (2023: Profit £2.3m). This was achieved as the group focussed on servicing its UK consumers with UK sourced grain and growing their domestic sales.

In addition to growing their sales with leading UK consumers, Openfield continued their relentless focus on improving service to their 4000 farmer members and enhancing links in the supply chains with their consumer customers. The group also sought opportunities across all areas of their operations to improve their Member Proposition, including enhancement to Insight, their member portal and their Insight App, where members can now access a number of new features including the option to receive grain delivery alerts, tipped net weights information and an excellent small seed offer which can support informed SFI decisions.

Commenting on its performance, Openfield’s chairman Philip Moody said: “I’m very pleased that our strategy to increase the size of our own fleet has paid dividends. These include improved service and reduced operating costs, which enabled us to maintain our profitability in another challenging year for our industry. It’s also very pleasing to see that our own fleet team is now a professional logistics provider, able to service our members and consumers better, as we took on additional work to increase our fleet revenues.”

Looking forwards, the group acknowledges that supply chains are increasingly seeking strong environmental, social, and governance (ESG) policies. To support their own ESG ambitions, Openfield is developing new supply contracts to support a sustainable agriculture model. The group is also trialling electric powered trucks and reviewing alternative fuel sources for their fleet, including Compressed Natural Gas. These actions will reduce their own carbon emissions, which have increased significantly since their own fleet of trucks increased.

Openfield performance to June 2024:

• Profit before tax of £0.8m compared with £2.3m in 2023;
• Operating costs reduced by 18.5% to £14.1 (2023 £17.3 million);
• Group revenues reduced by 31% to £555m (2023: 806m);
• Net assets (exc. pension fund) increased by 2% to £29.5m (2023: £28.9m)
• Total exported volumes were 244,000 tonnes (2023: 878,000 tonnes).