Mole Valley pays out £300,000 bonus to farmer members

Farmer shareholders in Mole Valley Farmers received a combined total of almost £300,000 in loyalty bonus payments in the 12 months to 30 September 2023.

Its loyalty bonus scheme was designed to reward farmers for spending with the co-operative, and points are earned on purchases of certain products including feeds, fertilisers, minerals and milk powders.

Each point earned is valued at 50p, and the bonus is calculated on a points per tonne system.

See also: Mole Valley Farmers expands with own organic feed mill

Farmers buying compound feed receive four points for a tonne, while manufactured minerals receive eight points, fertiliser one point, CalfStart milk replacer 10 points and Lamlac milk powder 10 points.

Chief executive Jack Cordery said: “The scheme is designed to return money to our shareholders based on what they spend. The more essential inputs that are sourced through us, the more they receive. By working together, with our shareholders committing to buying through us, the better the deals we can secure.”

He added: “The past year has seen pressure on farmgate prices, high interest rates and high inflation. We firmly believe we are collectively stronger when we work together, using our scale and buying power to weather price volatility, ensure security of supply and combat general unpredictability in the market.”

The farmer-owned co-op has more than 9,000 farmer members and turned over £615m in the financial year ending 30 September 2022, with a pre-tax profit of £3m.

Last year, Mole Valley Farmers reopened its Lifton Feed Mill in Devon after a £4m refurbishment. It also took over a lease on an organic feed mill at Uffculme, Devon, and developed new storage facilities at its fertiliser plant in Newport, South Wales.