Mole Valley Farmers Financial Results 2010 / 11
Mole Valley Farmers has completed another successful year’s trading, achieving a landmark in turnover supported by continued improvements in standards and service as well as ongoing investment in agricultural and rural retailing initiatives, laying down foundations for future growth and sustainability.
Amidst challenging trading conditions, Mole Valley Farmers whose co-operative principles are still at the core of its objectives, has achieved growth of 16.7% and increased turnover to 328 million (2010: 281 million) with like-for-like growth of 9%, in a strong financial result for the year ending 30th September 2011.
Pleasingly, Farmer Shareholder numbers have continued to increase, now exceeding 6,700 (+400) with the company returning a total benefits package to shareholders approaching 750,000 as part of the Farmer Shareholder Rebate Scheme both as on-going farmer shareholder benefits during the year and an end of year rebate.
Throughout the financial year, the business has tried to absorb and protect its members from inflationary increases and continues to deliver on its co-operative ideals, having sufficient scale to influence on behalf of its members as the supply industry faces considerable consolidation. A strong example of this is the launch of Mole Care, an industry first in own brand worming products, part of a strategy to bring members benefits in veterinary and pharmaceutical requirements. Renewable energy also remains on the agenda and a credible paper on alternative energy produced by the MVF Renewables team, particularly relating to photovoltaic systems has been welcomed by many.
Graeme Cock who has completed his first year as Mole Valley Farmers Chairman said, “The future outlook for agriculture and the speed of change is likely to intensify and our ability as an organisation to positively shape and influence outcomes within our market sector will be more important than ever before.”
Graeme continues, “The growth achieved this year has come from our commitment to being more competitive, offering choice and depth of range, improved service levels and better management practices, not to mention the fantastic commitment and effort of my colleagues right across the business. Our endeavours will remain the same for the year ahead, working on behalf of our members to enhance the value we provide wherever possible.”
It’s been a challenging year for both livestock customers and the agricultural team as feed ingredients increased to a record high and extremes of weather caused much disruption during early and late winter. In response, Mole Valley Farmers assisted members in absorbing some of these increases which on occasion reduced feed margins close to the cost of production, ultimately impacting financial results relating to the feed business profitability.
Like-for-like compound dairy volumes seemed to buck the national trend remaining static against the previous year with alternative feeds showing a small growth and minerals growing by 17%. Both calf and sheep feeds performed above plan, but the reduction in beef feed along with a fall in blend tonnages had the main impact on overall volumes for 2011.
The combined output of the feed mills exceeded 350,000 tonnes of finished products and 1.2 million was spent on capital upgrades across the manufacturing and distribution fleet. The Three Counties Feeds team, who joined the company in the previous financial year, made meaningful contributions to feed volumes, particularly dairy feed and have continued to develop business maintaining their own identity and product offering.
Overall, retail stores across the Mole Valley Farmers group of companies including SCATS Countrystores, Bridgmans and CWG Countrystores served and processed over 3.8 million transactions with some very good results despite government austerity measures and reduced customer confidence. Mole Valley Farmers retail sales increased to 82.5 million, an overall increase of 2.7% on the previous year with the Cornish flagship branch St Columb increasing sales by 7.4%.
The investment in SCATS Countrystores over recent years has seen annual sales increased to 45.2 million, an overall increase of 9.9%. Two stores in Dorchester and Andover, redeveloped in the previous year, have in their new format increased sales by 35.5% and 40.0% respectively. At the start of the trading year, the redevelopment of SCATS in Billingshurst, West Sussex had just been completed and growth this year has exceeded 9.0%. Overall, total transactions for SCATS Countrystores increased by 89,914.
In its first full year of trading since being acquired by Mole Valley Farmers, CWG Countrystores, which has 10 retail branches in the East Midlands and East Anglia has seen sales increased to 19.4 million which exceeded the sales budget by 5.7%. During the year, work has centred around improving stock availability, retail standards and customer service including the implementation of a new customer facing strategy that has enabled the business to start leveraging the benefits of a partially rejuvenated brand and increase the cross-selling synergies of both agricultural and non-farming products.
In North Devon, Bridgmans had another successful trading year with retail sales exceeding 8.6 million with strong growth in animal medicines, animal husbandry, dairy hygiene, feed supplements and feed equipment. Direct to farm businesses achieved sales growth of 11% to 6.5 million.
Andrew Jackson, Mole Valley Farmers Chief Executive said, “During the year, emphasis has remained on those operational cornerstones that previously and in the future will continue to underpin our overall performance.
Despite having to contend with a very economically challenging year, influenced by what seemed to be unprecedented increases in core agricultural input costs during early and late winter, I believe the staff across the group have endeavoured to mitigate the effects of adverse market conditions and low consumer confidence still managing to produce a positive trading result.”
Following a period of sustained positive growth in recent years, the increasing requirement for additional office space at the company Head Office in South Molton was fulfilled in September.
Mole Valley Farmers was started in 1960 by a small group of farmers in South Molton, Devon. Today, there are over 6700 farmer shareholders and over 22,000 country members. It is one of the largest employers in the South West, with a turnover in excess of 328 million employing more than 1,700 staff. Mole Valley Farmers is one of the few businesses based on a co-operative model in the supply industry, with a total commitment to the farming and rural industry.
Over the years, the company has developed and grown, making investments in:
Nine retail branches in the South West
Mole Valley Farmers Online www.molevalleyfarmers.com
4 compound feed mills for all animal feeds
A network of blending operations
A mineral supplement plant
A quality farm building and engineering division
19 SCATS Countrystores across the South, South East and South Wales
Local agricultural supplies company Bridgmans
A joint venture Mole Valley Forage Services
CWG Countrystores Ltd with 10 stores at Stamford, Dereham, Bury St Edmonds, Colchester, Melton Mowbray, Fauld, Newark, Darley Dale, Worksop and Market Rasen
Cox & Robinson Farm & Country
Mole Valley Renewables business
CWG Countrystores Ltd has 10 stores at Stamford, Dereham, Bury St Edmonds, Colchester, Melton Mowbray, Fauld, Newark, Darley Dale, Worksop and Market Rasen. www.CWG.co.uk
SCATS Countrystores are part of the Mole Valley Farmers Group. The company now has 19 stores throughout the South of England and South Wales from Kent to Dorset, Bristol and South Wales and up to Berkshire and are the leading supplier of goods and services for farmers, country dwellers and the general public.www.scatscountrystores.co.uk