Profits Up £1 Million at Cornwall Farmers

Thursday 13th March 2008

Members of the agricultural and retail co-operative, Cornwall Farmers, were given good news all the way at last week's Annual General Meeting.

In response to the massive changes taking place to the farming industry following the removal of production subsidies in 2005, Cornwall Farmers embarked on an ambitious restructuring programme. Chairman William Thomas said "My objective was to ensure we were quick to embrace the coming change in order to have a sustainable supply co-operative for the next generation of farmers."

Chief Executive Andrew Cocks reported post tax profits of £633,000 in 2007. "In the previous year we took the cost of the restructuring on the chin which meant posting a loss. In 2007 we saw the predicted benefits of the project coming through."

Almost £250,000 of the profits were distributed amongst members and employees through interest on investments and trading bonuses. "That represents an average return of 5.3%, probably better than many building society accounts" added Mr. Cocks.

In his Chairman's Statement, Mr. Thomas expressed satisfaction in having kept each of the pledges made to the members last year. Firstly we recruited two new Directors to represent new customers in Devon. Secondly we simplified things by removing credit charges from our invoices. Most importantly we introduced cash discounts for Shareholders in all of our 16 branches."

Mr. Cocks finished proceedings by offering a view for the future. "Prospects are good. Farmers incomes are at long last on the increase as food processors and retailers realise the urgent need to secure food supplies. The exponential growth in the world population coupled with the new wealth of developing economies in India and China means demand for food predicted to outstripping supply. Add the impact of climate change and suddenly British agriculture is being recognised for its true worth. Wheat and milk prices have all but doubled in the last 9 months. Whilst the cost of feed and fertiliser has risen too, for the first time in recent years, a real opportunity for profit exists for those ready to adapt."

The benefits of membership are open to everyone. To become a shareholder of Cornwall Farmers simply pick up a form in store, visit www.cornwallfarmers.co.uk or telephone 01872 274301 for more details.