Cornwall Farmers prepares for the future
Throughout its 90 year history, Cornwall Farmers has constantly evolved and adapted to changes whether agricultural, economic or political. The co-operative is once again reshaping to ensure its strength and sustainability.
In the next three year period two things at least are certain. Shortly a general election will return a government with an inescapable responsibility to tackle the countrys deficit. Most commentators anticipate a raft of changes brought to bear on public and private sectors. Increases in interest rates and employment taxes seem inevitable.
Further, most agricultural sectors are already turning minds towards the possible changes to the Common Agricultural Policy in 2012 when the current Single Farm Payment regime reaches the end of the transition period. Since the removal of production based subsidies in 2005, 30% of the regions dairy farmers have ceased trading and it is widely expected that a further 20% will review their futures before the next CAP review. At the same time, many other farmers have continued to invest. The net result is a more sophisticated agricultural base in the region run by fewer but larger and more professional farmers.
The needs of Cornwall Farmers members continue to evolve and Cornwall Farmers will evolve with them. Cornwall Farmers has announced a number of potential developments in anticipation of the changing needs of its members. Consultations have commenced with some 40 staff whose roles may be affected.
Three of the 16 existing branches are proposed to close in July 2010, namely Liskeard, Launceston and Holsworthy. Cornwall Farmers merged with neighbouring co-operative Countrywest Trading in 2005. Since then, the business has carried out a controlled rationalisation of resources and this represents the final round. We are still left with too many branches too close together in our central trading area, said Andrew Cocks, Cornwall Farmers Chief Executive Officer. This in turn dilutes the return on 2.5million of members capital which can be better invested to meet their new requirements in a fast changing world.
Cornwall Farmers announced at the same time plans to expand and develop branches at Wadebridge, Callington and Threemilestone, near Truro. Behind the scenes, further investments will be made in respect of our internet selling capabilities and telephone based customer service desks. Mr. Cocks added.
Since the acquisition of Countrywest Trading the co-operatives turnover rose from 50 to 85 million. Staff numbers rose from 210 to 320 staff. The number of members rose by 10% to 4,400. The business has net worth of 8m.