An AGM trading update from the NWF Group, covering the first three months of its current financial year, reports lower than expected feed volumes during the period from its feed manufacturing division NWF Agriculture.
The statement says that volumes are down through lower levels of merchant business and good forage conditions which combined to give a weaker performance than expected over the quieter summer period. The company believes that the strong milk price will support good demand from dairy farmers, its most significant customer segment, as the winter feeding period approaches. At the same time, it warns that feed commodity prices remained elevated for the year-to-date.
The NWF Fuels division has managed the increased level of commercial demand and traded in line with expectations, while the NWF Food logistics division traded ahead with robust demand across all sectors. The division’s HGV recruitment strategy reduced reliance on agency drivers to maintain driver numbers with driver pay increases passed onto customers.
“We have noted recent press comment reflecting concerns around the availability of drivers, including the current issues with retail petrol availability,” says NWF chairman Philip Acton. “As a business with proven capability to manage its supply chain and delivery infrastructure effectively, we are pleased to report that we have not been negatively impacted by these issues and remain focused on supporting our domestic and commercial customers.”