Grain Merchants' Profits Plummet 65%

Farmers are being urged to exercise caution when trading grain due to a decline in profits among key players. According to consultant Richard Whitlock's analysis of company accounts for the 2024-25 period, combined pre-tax profits for 23 firms that purchase free-market farm grain in the UK dropped sharply by 65% to £39.28m from £107.61m.

The decline is attributed to the difficult trading environment faced by both farmers and grain merchants. Companies such as ADM Agriculture and Cefetra posted losses, while others like Frontier, Wynnstay, and Simpsons Malt managed to make profits.

Whitlock advises farmers to carefully select companies to trade with based on their risk profile and ability to pay, rather than just considering turnover or grain prices offered. He also suggests checking balance sheets for a diversified portfolio and strong financial position.