Cofco International UK (formerly Nidera UK) has reported a loss of £3,178,122 after tax for the year ended December 31, 2017.
The company strategic report said it had been faced with reduced combinable crop production leading to a lower exportable surplus. Ongoing uncertainty relating to Brexit had continued to negatively affect farmer decision making. These factors had an adverse effect on trading margins in core product sectors, said the company.
Cofco said it continues to pursue a strategy of growing its market share of grain, seed and fertiliser by extending its geographical coverage.
The company made a £269,631 profit in the year ended December 2016.
Mark Dawdry of the company said 2017 had been a year of repositioning the business to meet new market dynamics and future challenges and that there had been one-off expenses, such as new IT systems, associated with reorganisation of the business, which became Cofco International UK in April 2017.
“We have £14m net equity – the highest it has ever been in the history of the company. Net equity has doubled over the last 10 years.”
Mr Dawdry said the company is planning to invest in new bagging and blending facilities and to offer liquid as well as solid fertiliser.
“We are growing volumes of grain trading despite lower production and availability. We are part of Cofco Group – the world’s largest agri-business with substantial resources which most of our competitors cannot match and we are looking to the future with confidence.”
While he did not expect the UK to export wheat of any significant volume, he said winter barley was a different situation. “Yields have been pretty good and we are continuing with a programme of exports of barley and other products such as beans and rapeseed.”