Origin Enterprises, the agri-services group which owns Goulding Fertilisers and Agrii in the UK, has reported a satisfactory start to the 2018 crop season.

In a statement released today, it said revenue was up 3.9% to €346.7m for the three months to October 31.

When the effect of exchange rate is stripped out, revenues increased 5%, mainly driven by increased volumes which were up 7.8% in its crop inputs and agronomy businesses.

In the statement, it said “improved on-farm sentiment together with a positive planting profile to date for autumn and winter cropping” was favourable for inputs demand and agronomy services.

Its Irish and UK business saw revenues increase 9% in the period, driven by a 5.7% increase in agronomy services and crop inputs.

Improved field conditions

Despite a delayed start to field operations during August and September, Origin said improved conditions in the fields during October enabled significant crop sowing.

It said total winter oilseed rape and winter wheat plantings are currently forecast to be approximately 2.8% above last year at 2.42m ha.

Combined autumn, winter and spring plantings for the 2018 growing season are estimated to be in line with last year at 4.55m ha. It expects a reduction in spring plantings as a result of the increased autumn sowing.

The group said the “cropping base is currently well established and in good condition and this provides a solid platform for the main season”.

Fertiliser

The group saw an increase in fertiliser sales volumes in August, September and October. But it noted that new season orders have slowed due to fertiliser prices increasing as farmers adopt a wait-and-see approach on buying fertiliser until closer to the main application period.

The Bunn Fertiliser acquisition in the UK which was completed in August 2017 was fully integrated in the period and the group said it is performing to expectation.

R&H Hall, the group’s joint venture with Barnett in Northern Ireland saw increased sales volumes of feed in the period. This was driven by good spot demand due to poor animal grazing conditions and improved forward buying interest from customers as a result of generally positive backdrop for primary dairy production.

Origin is holding its AGM in Dublin on Friday.

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