Leading farmer-owned cooperative Fram Farmers (www.framfarmers.co.uk) achieved a Group operating surplus of £184,362 before tax (£141,000: 2015/2016) during the financial year to 30 June 2017. Its policy of returning all manufacturers’ rebates in full ensures that Members collectively received payments totalling £436,000, to help offset their membership fees.

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Now in its 57^th year of operation, Fram Farmers provides the purchasing, grain marketing and administrative function for over 1,400 farming businesses throughout the UK. who collectively farm over 400,000 hectares, enabling them to obtain best value from the supply chain.

Addressing the cooperative’s Annual General Meeting at its offices in Framlingham, Suffolk, Chairman Rodney Baker-Bates outlined that it had been another challenging year for members and the Group. However, Fram Farmers achieved a positive cashflow from its operations and the performance of the Group provides a strong base for the future.

Framtrade Ltd, the wholly-owned retail subsidiary which supplies oil and gas products to more than 4,000 members of the public, achieved a pre-tax operating profit of £271,484 (£273,520 2015/2016), adding to Fram Farmers’ strong balance sheet. The Group’s Capital and Reserves rose to a record £3.460 million (£3.302 million 2015/2016), providing a level of financial strength which gives suppliers confidence that they will be paid on time and in full, enabling the cooperative to negotiate extremely competitive terms.

Despite an increasing trend for Members to place orders closer to the time that inputs are required, their commitment to the cooperative remains very strong. This was reflected in a 4.8% increase in the number of invoices processed during the year, to 214,036 (204,280 2015/2016). Paperless statements, which were introduced in April 2016 to provide greater convenience, are now chosen by over 50 per cent of Members, who also benefit from the ability to view live account balances online.

Richard Anscombe, Fram Farmers’ Chief Executive, reported that the Purchasing Department had made good progress during the year, with turnover increasing by 6.3% and the volume of products sourced rising by 4.4%. A major reason for the increase is the knowledge, dedication and professionalism of the Group’s staff, who source products at highly competitive terms, provide relevant market information and expert commentary which is always solely in the Members’ best interests.

Fram Farmers’ Livestock Department continues to grow at over 20% annually under the management of Jodie Allen, while Fram Farmers Insurance, the cooperative’s insurance business formed in December 2015 and managed by Jemma Neesham, continues to grow, saving Members an average of 30% on their premiums.

The Arable Inputs Team, managed by Laura Buckingham, has developed increasingly strong relationships with stakeholders, and is very successful in securing key inputs and negotiating very competitive deals, while adding value to the independent agronomist sector.

Now in its seventh year, the unique collaboration between Fram Farmers’ Crop Marketing Department and marketing partner ADM Direct is stronger than ever. The total annual volume of grain traded through the Society reached 195,000 tonnes and, at 116,500 tonnes, commitment to the combinable crop marketing pools was close to its highest-ever level.

Managed by a committee of Fram Farmers Directors and senior managers, with valuable global market commentary and advice from the ADM team, the pools enable members to benefit from their cooperative’s core values of trust and transparency, together with access to cutting-edge global markets information and unique contracts, to achieve consistently high returns. Consequently, they provide Members with a well-balanced marketing approach which is increasingly relevant in today’s volatile agricultural commodity markets.

“Given the uncertainties over Brexit and pressure on margins within the agricultural sector, I am pleased with the Group’s performance during the last financial year,” Richard Anscombe stated: “During the year we have made significant investments in frontline services, our people and systems to maximise the quality and value of the pro-active service which we provide for our Members. They appreciate that we continue to operate ethically and transparently solely in their best interests, which is reflected in the number of new farming businesses that are applying to join Fram Farmers.”