In 2022, fenaco cooperative achieved the highest net revenue since it was founded with CHF 8.06 billion. The operating result (EBIT) is also strong, at CHF 138.4 million and a return on sales of 1.7 per cent. As expected, it is back at the level where it was before the extraordinary pandemic years. In its anniversary year, the agricultural cooperative can therefore look back on a financial year that is positive overall. fenaco is celebrating its 30th anniversary with a three-part celebration programme: Together with the Swiss Museum of Transport in Lucerne, it is opening a new exhibition to the public on the subject of agriculture and food industry. The fenaco profit sharing scheme will be expanded for members. And fenaco organises four regional anniversary celebrations for its staff and retired employees.
Distortions on the international procurement markets due to the Ukraine war, ongoing supply bottlenecks as a result of the Corona pandemic and the impending energy shortage all had an impact on the 2022 financial year of fenaco cooperative. Net turnover rose by 9.2 per cent compared to the previous year to CHF 8.06 billion. This is the highest net turnover figure in the 30-year history of the cooperative. The main drivers were the business fields Agro and Energy. In addition to price effects, the photovoltaic sector in particular achieved a positive growth. In the food industry, the upward trend continued after the pandemic. The retail trade was able to practically maintain the high level of the Corona years.
A strong result at the pre-corona level
During the pandemic years of 2020 and 2021, fenaco cooperative recorded exceptionally high operating results (EBIT). In 2022 as expected, the EBIT was back at the pre-corona level. It reached CHF 138.4 million with a return on sales of 1.7 per cent. The volatile environment put a lot of pressure on margins. In the business field Agro in particular, fenaco cushioned the significant price increases for agricultural production resources, such as fertiliser and feedstuffs, to help farmers. Compared to the benchmark year 2019, before the pandemic, EBIT increased by more than 14 per cent and thus grew in parallel with net turnover.
Based on a lower EBIT, the company result in 2022 is significantly below the previous year at CHF 52.1 million. Market distortions in the international grain trade as a result of the Ukraine war resulted in extraordinary costs. The contribution of CHF 10 million to the «Foundation for Sustainable Nutrition by Swiss Agriculture» to support the dialogue between town and country is also included in the extraordinary costs.
The LANDI and their members, Swiss farmers, also benefit from the positive business trend at fenaco. They participate in the good result with CHF 35.9 million. That is CHF 2.9 million more than in the previous year.
Added value for rural areas in Switzerland
With its activities, fenaco cooperative makes a significant contribution to the economic strength of rural Switzerland. The company invested CHF 174.0 million in infrastructure such as silos, logistics centres, photovoltaic systems and shops. A further unrecoverable amount of CHF 2.9 million went into the development of innovative technologies and processes, mainly in research collaborations and start-up partnerships. At the end of 2022, fenaco employed 11,500 people, which was 232 more than in the previous year. 60 per cent of these jobs are in rural areas, while the Swiss average is only 37 per cent.
Outlook for the 2023 financial year
fenaco cooperative expects a net turnover of around CHF 8 billion for 2023. EBIT is likely to be below the level of 2022, and the company result will even out again into the range of the pre-Corona period. The reason for the lower EBIT is increased costs, which cannot be consistently reflected in the sales prices or offset by efficiency gains. There are also various major projects, particularly in the areas of IT and logistics. The planned investment volume is CHF 265 million.
30 years of fenaco
fenaco emerged in 1993 from the amalgamation of six regional cooperative unions. In 2023, it will celebrate its 30th anniversary with a three-part programme. Together with the Swiss Museum of Transport in Lucerne, fenaco is setting up a exhibition on the subject of agriculture and the food industry. It will open on the 1st of June 2023. For the farming members, the fenaco profit sharing scheme, which was introduced for the 25th anniversary, will be expanded in the long term. Even more active farmers should be able to benefit from the rebates and gift packages. And fenaco is organising four regional anniversary celebrations for its staff and retired employees.
Find out more about fenaco cooperative’s 2022 financial year (German or French only): geschaeftsbericht2022.fenaco.com
Of pitchforks and drones: Agriculture today
On 1 June 2023, the new exhibition on agriculture and the food industry will open its doors at the Swiss Museum of Transport in Lucerne. It is a gift from the fenaco cooperative to the public for its 30th anniversary. Media representatives are cordially invited to the opening event. It will take place on 1 June 2023 from 10 a.m. to around 12 p.m., followed by a «Farmers' lunch».
Please send registrations to firstname.lastname@example.org.