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

Last week, the company said improved farmer sentiment together with improved autumn and winter plantings has been favourable for the group. Revenue increased 3.9% to €346.7m for the three months to 31 October.

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 overall.

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Its Irish and UK operations, which account for two-thirds of the business, saw sales increase 9% in the period. This was 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 farmers to catch up on crop plantings. 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. It says the 2018 harvest crop is 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, sold more feed in the period, driven by good spot demand as a result of poor weather and improved forward buying. It noted that the positive backdrop for dairy was driving demand.