Ipswich-based grain firm Nidera celebrates improved performance
- Credit: Archant
An Ipswich-based grain, seed and fertiliser merchant is celebrating an improved performance last year in spite of tough challenges for the industry.
Nidera saw its turnover grow from £289m to £324m in the year to December 31, while earnings before interest, tax, depreciation and amortisation were £1.7m. Its tangible net worth rose by £1.3m to £12.7m.
Mark Dordery, managing director of the UK group, which comprises Nidera UK, the Ipswich Grain Terminal, Suffolk-based Grainseed, and Barmby Moor Holdings in Yorkshire, said the business continued to grow on the back of significant investment in the sector.
“This is an acceptable performance given the challenges that agriculture currently faces both at a local level and globally,” he said.
“Furthermore, we have again achieved record sales volumes in our core products of grain, seed and crop nutrition.”
In recent years Nidera has acquired Eye-based seed specialists Grainseed Ltd and the grain trading arm of Liverpool-based Criddle and Company Ltd. It has also continued to make significant capital investment in fixed assets, including new land and warehouses at Langton Green, near Eye. A key factor in the company’s success has been its management of the increased price volatility resulting from the EU referendum, said Mr Dordery.
“The biggest impact of Brexit so far has been the devaluation of sterling which has contributed to a sharp rise in grain prices since the referendum and this has been a two-edged sword. The jump in grain prices has helped to improve incomes for arable farmers, which is good news for everyone associated with the sector, but it may have caused problems for any trading companies that were caught unawares,” he said. “It is more important than ever for farmers to be confident in the financial standing of the businesses with which they trade.”
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Nidera is wholly owned by China’s Cofco International, part of major international trading company and agri-food business Cofco Corporation, which has assets of more than $70bn US dollars. A worldwide rebrand under the Cofco name is planned over the next few weeks. In the UK, its fleet of 35 HGVs will retain their distinctive blue colours but will carry the Cofco name and logo.