UK and Ireland feed materials supplier Cefetra, part of the €16.6 billion German multinational BayWa Group, has made significant increases in profitability and sales from trading in 2018. That year saw Cefetra and its UK subsidiaries transferred to the BayWa Agri Supply & Trade (BAST) business unit within the Group’s €11bn Agriculture segment.
The UK business reported an operating profit of £5.29 million on revenues of £991m in the year to December 31st 2018, compared to £4.5m and £865.9m in the previous year – respective increases of 32% and 15%. The volume of materials handled was up by 6% to 4.33 million tonnes (4.09m tonnes in 2017).
The year was one of significant change for the business, as it saw operations move from King George Vth Dock in Glasgow, where it and its predecessor businesses had been based for 26 years. Instead, the majority of Cefetra’s activities were transferred to the ports of Rosyth and Leith on the River Forth, through a long-term agreement with owner Forth Ports.
The move provides Cefetra with larger, more modern facilities, with the Rosyth terminal being deepened and new cargo handling equipment ordered to accommodate the larger vessels used by the company. In addition, a new purpose-built storage complex is also due to be completed by the end of 2019.
As part of the changes, the Cefetra UK head office premises moved from King George Vth Dock to Glasgow Airport Business Park as part of a long-term agreement.
The latest year saw a ten month contribution from Premium Crops, the specialist crop growing and trading business acquired in February 2018 to widen the scope of services and crops within the Cefetra offer.
Since the year-end, the company has reached agreement with Associated British Ports to develop an import facility at the Port of Ayr, in order to grow the business in south west Scotland.
“We believe that these developments will be a major benefit to the company and our customers providing excellent logistics hubs which are ideally suited to serve the needs of the Scottish market for the foreseeable future,” says Cefetra UK managing director Andrew Mackay. “The robust financial statements highlight what has been another successful year for Cefetra, with growth achieved in both volumes and profit.
“We supplied a wide range of commodities including grains, oilseeds and oilcakes as well as other non-grain feed ingredients. Our ability to provide an independent view, along with tailor-made efficient solutions for our customers, has enhanced our position as the supply partner of choice in both the UK and Ireland.
“We have continued to invest in our systems and personnel to manage our growth and enhance customer service levels. Quality has remained at the forefront of our priorities during the year and we have continued to take an industry-leading role in the supply of sustainable products.
“We are confident that we will continue to develop and build our business over the coming years.”