A trading update from the NWF Group, released to coincide with its annual general meeting last week, warns that feed margins are under pressure.
“Group trading for the first quarter of the new financial year, traditionally our quietest trading period of the year, has been in line with the Board’s expectations and ahead of the same period last year,” notes NWF chairman Mark Hudson.
“NWF Feeds has continued to focus on providing high quality nutritional advice and sales direct to farmers. Volumes are robust. However, margins remain under pressure as a result of the lower milk prices being achieved in the UK and a drift in commodity prices over the summer period. New Breed, acquired in June 2015, has performed in line with the board’s expectations.
“The board continues to focus on development opportunities, both organic and through targeted acquisitions, concludes Mr Hudson.
The NWF Feeds division reported an operating profit of £1.8 million on revenues of £144.9m in the year ended May 31st 2015, compared with £3.3m and £160.7m in the previous year (ATN August 7th).