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Operating profits up at ForFarmers despite sales dip

For Farmers Truck

FORFARMERS has recorded higher operating profits in its 2020 annual results: €24.2m, compared with €14.2m in 2019.

The European animal feed business said revenues were €2,351.9m in 2020, down from €2,463.1m a year earlier.

See also: Poultry feed ration prices flatten off

The total volume of feed supplied was down by 3.5% to 9.7m tonnes.

Chief executive Yoram Knoop said the results were satisfactory, given the covid-19 pandemic.

Little disruption

“We hardly experienced any disruption to our operational processes as a result of covid measures, although our volumes and margins did suffer,” he said in the company’s annual results.

“At the same time, we sold more specialities, in line with the trend of previous years. We were able to reduce some of our costs relatively quickly and make others more flexible,” added Mr Knoop.

He also said he felt it was unlikely that there would be a lasting impact from Covid on the compound feed sector.

Poultry sector

In its evaluation of the poultry sector, ForFarmers highlights growth in specially developed diets that slower-growing birds require in countries like Germany and the Netherlands, which are higher in cost than standard rations.

It says that, in the UK, fewer turkeys were sold at Christmas last year because of covid measures – but that the poultry sector more generally is expected to recover and remain in growth in the medium and long term.

Polish market

Poland’s poultry sector experienced a challenging year.

“The Polish poultry market is a growth market and an export market, in
terms of both the integrated chain and the non-integrated segment of the market.

“However, in 2020 the market was badly hit first by the outbreak of avian flu and subsequently the impact of the measures to combat Covid-19.

“The closure of the hospitality sector led to the temporary loss of a major part of national and international demand for poultry products.

“Poultry farmers decided not to immediately restock their barns with new animals because the price for broilers was below the break-even point.”

The full annual report can be found on the company’s website.