Huge uplift in profits at Cefetra during 2022

A higher turnover helped grain and feed trader Cefetra make a pre-tax profit of £16.2m in 2022, up from £3m the previous year.

This fivefold increase was driven by a combination of higher global grain prices due to conflict in the Black Sea region and a strong trading performance by the company in volatile markets.

Turnover reached £1.59bn for the financial year ending 31 December 2022, up from £1.24bn the previous year, while cost of sales increased by £325m to total £1.55bn.

See also: UK wheat exports struggle to compete on global stage

The UK accounted for 72% of the company’s total turnover, with the remainder coming from Europe.

During the financial year, Cefetra purchased two of the former Alexander Inglis & Son grain stores at Ormiston and Charlesfield in Scotland following that company’s collapse.

It also invested in upgrading facilities at its sites in Wessex and Sudbury.

Cefetra chief executive Andrew Mackay said: “The global markets are unpredictable. For over 30 years, our team at Cefetra have shown resilience, adaptability and foresight, allowing us to navigate these markets with expertise.

“The strong relationships we have built working in a partnership approach with our suppliers, customers and logistical providers proved invaluable in sustaining strong supply chains.

“This was clearly demonstrated in 2022 when Russia invaded Ukraine, causing many supply chains to be disrupted and price volatility to increase significantly.

“Throughout this period, we maintained our supply chains to our customers and helped our farmer-suppliers to lock in good prices.”