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Company update: Agrifirm 2011

In a financial sense, 2011 was a two-faced year for the Agrifirm Group. The net profit amounted to €10 million, a decline of €14 million in comparison to the previous year.

This decline was mostly due to more competitive pricing by Agrifirm’s member companies Agrifirm Feed and Agrifirm Plant and to lower results realised by minority participations.
 
Agrifirm’s other subsidiaries in the Netherlands and abroad achieved higher results.
 
The feed cooperative created benefits for its members via the Agrifirm Feed and Agrifirm Plant member companies, which were directly passed on to the members through pricing and customer discounts.
 
“We are satisfied with this state of affairs. The merger is producing the results we expected. Our customers and our employees are seeing the benefits. I expect that we can continue to further expand this success in our core activities,” says Ton Loman, Chairman of the Executive Board.
 
Revenue in 2011 rose to €2.3 billion (2010: €2.0 billion) as a result of higher prices of raw materials for livestock feeds, grains and fertilisers.
 
For Agrifirm, the increase in prices represented a sharp increase in the cost of working capital and interest expenses increased by €4 million.
 
The consolidated result realised by the minority participations decreased by €8 million compared to 2010.
 
Fewer people
As a result of the merger, the number of employees that left the organisation in 2011 was higher than planned. Some of these positions were not replaced. The additional savings were offset by higher restructuring costs.
 
In establishing the net result, € 6.5 million was reserved for customer discount. In April, €1.50 per tonne of livestock feed and 2% on the revenue from crop protection products will be paid to customers.
 
€3 million of the net result will be reserved for Member Profit, so that €7 million will be added to equity capital. Agrifirm’s equity capital at the end of 2011 represented 45% of the balance sheet total.
 
Optimistic future
Agrifirm is optimistic about the future. “Of course we are not satisfied with the decline in profits in 2011. But when you analyse things properly, you will see that we are perfectly on track with our core activities,” says Loman.
 
He points to the many innovations that Agrifirm brings to market in the Netherlands and beyond. “This makes our customers successful and grows our market share. I can see from the market and from our people that we are pursuing the right course. We will continue on that course in 2012. The results of our customers and members are a priority in this respect.”
 
At the beginning of April, members will receive the Annual Review, a special publication about the results achieved by Agrifirm in 2011. This publication will also devote full attention to developments driven by innovations.
 
A separate annual report will no longer be printed. Effective 28 March this information will be available on the website of Agrifirm.

Dick Ziggers

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