Last week, United Oilseeds unveiled its financial performance at a corporate and press event held at Newbury Racecourse, attended by members of the press, trade organisations, and other distinguished guests.
On the day guests attended presentations from Managing Director James Warner discussing financial performance and industry trends. James was joined by guest speakers, Dr. Julian Little discussing the OSR Reboot campaign, and farmer member and star of Great British Bake Off (GBBO) 2024 Mike Wilkins who focused on diversification on his Wiltshire farm and touched on his GBBO journey.
Financial results announcement
For the financial year 2023-24 United Oilseeds, made a profit of £1,814,459, marking the third-highest in its history. Despite a challenging market, the co-operative's annual turnover remained steady at £172,208,871, with net worth increasing by 8.5% to reach £17.5 million (unaudited).
Managing Director James Warner highlighted the co-operative’s resilience:
“Achieving our third-highest profit is a testament to our strategic focus. Despite pressures within the oilseeds sector, we maintained stable turnover and strengthened our financial position.”
Diversification Strategy Boosts Resilience
United Oilseeds has successfully diversified beyond oilseed rape (OSR), with increased revenue from non-OSR commodities, providing critical resilience amidst industry challenges. However, overall commodity tonnage traded decreased by 9%, aligning with sector-wide reductions, totaling 377,770 tonnes compared to 415,964 tonnes the previous year.
Record Profit Redistribution to Members
During the year United Oilseeds distributed £616,000 in profit-sharing to its trading members - the largest payout in its 58-year history. Mr Warner indicated that a further profit share payment for the current year will be announced in the coming months.
OSR Yields and Seed Market Trends
Data from the 2024 harvest revealed a national average OSR yield of 2.91 t/ha, an 8% decrease from last year and 9% below the five-year average. Total UK production dropped to 833,873 tonnes, down from 1.21 million tonnes in 2022/23.
The seed market industry saw a 36% decline in sales, which was reflected at United Oilseeds and driven by shifts towards Sustainable Farming Incentive (SFI) actions. However, United Oilseeds maintained a strong share of the certified seed market remaining around 30%, with leading varieties like Aurelia and PI Pinnacle dominating their segments.
OSR Reboot Initiative Gains Momentum
Looking ahead, United Oilseeds is spearheading the OSR Reboot campaign to revitalise UK OSR production. The initiative aligns with DEFRA’s focus on food security and sustainable domestic supply chains. Collaborative industry groups are already making progress on policy reforms and innovations in breeding technology.
“The response to the OSR Reboot has been outstanding,” said Mr Warner. “We are optimistic about building a sustainable future for UK OSR.”
With the forecasted OSR planting area at a 40-year low of 215,000 ha, equating to 663,850 tonnes, the sector faces significant challenges. Yet, United Oilseeds remains committed to driving growth and ensuring stability for UK farmers.