United Oilseeds maintains profits despite tough year for crop
© Tim Scrivener Farmers’ co-operative United Oilseeds made a pre-tax profit of £1.8m in the financial year ending June 2024, despite a challenging year for the oilseeds sector with the smallest UK crop for decades.
Profits were down slightly on the record highs of the previous year, but were still the third highest in the firm’s 57-year history.
The volume of commodities traded fell by 9% during 2023-24, with a total traded tonnage of 377,800t.
This resulted in the co-operative achieving a lower turnover of £172m.
See also: UK wheat imports highest in over a decade due to small crop
Last June, United Oilseeds paid out a record profit share distribution to its 4,500 members of £616,000.
At United Oilseeds Annual Corporate and Press Day in Newbury on 7 November, managing director James Warner said the results underscored the firm’s commitment to delivering value for its members and stakeholders by adapting swiftly to industry shifts and driving sustainable growth.
United Oilseeds’ managing director James Warner (centre) with guest speakers Dr Julian Little (left) and Mike Wilkins (right) © United Oilseeds
He said: “Our core has always been oilseed rape, and it will continue to be oilseed rape, but what we have done over recent years is diversify into some other commodities.
“We are continuing to expand our offering and we will continue to try to supercharge that moving forward.”
Mr Warner added that the firm has also been trading oats, peas, beans, linseeds, and more recently sunflowers.
“Today, we are generating more revenue from non-OSR commodities than ever before.
“This diversification has provided critical resilience, helping us to navigate and mitigate some of the well-documented challenges currently impacting OSR production.”
Seed specialists
United Oilseeds is the parent company to Hubbards Seeds, a seed company specialising in environmental crops, maize and grass.
While the Sustainable Farming Incentive in England may create some increased competition for rapeseed plantings and have a detrimental effect on overall UK oilseed production, Mr Warner suggested that its specialist seed business could be set to benefit.
He said: “The positive is we do have our sister business Hubbard Seeds, where we have had really strong performance and our highest profits since we acquired the business back in 2012.”
Sales at Hubbard Seeds were up by 16% last year and have been up by about 25% for the year to date.