The Group is confident that macro-economic factors, including world population growth and the need for higher levels of national self sufficiency, should continue to make the UK a strong and growing food producer. In addition, the UK farming sector benefits from a favourable growing climate.
The fragmented nature of the UK’s agricultural supplies market presents growth opportunities, and the Group has demonstrated its ability to increase its market share organically and through complementary acquisitions. Wynnstay has completed over 50 corporate transactions and expanded its supplied product range to more than 25,000 SKU’s (stock keeping units or individual product items). It has become a preferred route-to-market for many of its main suppliers.
The Group's strategy focuses on developing these twin stands of acquisitive and organic growth as follows:
Operational Strategy and Long-Term Viability
Wynnstay’s objective is to establish itself as the ‘supplier of choice’ within its trading areas, providing a comprehensive off ering that caters for the needs of arable, livestock and mixed farms. We place a great deal of importance on identifying innovative products and bringing ‘best-in-class’ products to customers.
We are also investing in our advisory services to farmers, and have strong teams of specialists in dairy, poultry, animal health, calf, hardware, youngstock and animal farming. These technical teams assist our customers in identifying areas to improve their production efficiency. As UK agriculture comes under increasing pressure to increase efficiency and productivity, we believe that the advisory element of our services will become more important.
Taken together, we believe that this strategy builds customer engagement and creates a platform for further growth.
The Group’s broad range of activities across both the livestock and arable sectors helps to mitigate risk and even out the effects of sub-sector cycles. This balanced business model is one of the Group’s major strengths.
Agricultural businesses continue to seek efficiencies throughout the sector through the embracement of innovation, technology, automation and technical advice. The Group will continue to focus on new product development, R&D and an ongoing investment in routes to market to enhance the performance of our customers’ farming businesses.
We are also investing in our advisory services to farmers and have a strong team of specialists (including dairy, poultry, animal health, calf, hardware and arable) who assist customers in identifying areas to improve efficiency. As the pressures on UK agriculture to become more efficient and to enhance productivity increases, we believe that the advisory element of our services will become more important.
Our broad range of activities across agricultural supplies also helps to even out the effects of sub-sector cycles and we view this approach as a major strength.
The Board intends to maintain this balanced approach to Wynnstay’s spread of activities.
The Board operates a strategic planning process to ensure clear direction and focus for the strategic development of the business, which is supported by annual budgets and cashflow projections.
The Group’s corporate plan ensures clear direction and focus for the long-term strategic development of the business. The plan is regularly reviewed to ensure it is up to date with changing circumstances, allowing annual budgets set in line with long-term goals whilst still recognising specific market conditions.
The Company’s growth prospects are underpinned by macroeconomic factors that point to increased worldwide demand for agricultural produce, and the ability of the UK agriculture sector to feed and benefit from this demand.
While Brexit has presented our sector with significant uncertainty over the past few years, the Board remains optimistic for the future of the UK agricultural industry and is encouraged by the prospect that 2020 could bring greater clarity. The UK Agricultural Bill presents a framework focused on economic resilience and public money for public goods, with financial support guaranteed to 2022. The effects of the implementation of this legislation, as well as the UK’s forthcoming exit from the EU, will be given careful consideration in the ongoing development of the business.