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BM AGRI
Dual record
in a turbulent period
In turbulent times, the trading house BM Agri has succeeded in reaching last
year’s target of net sales of more than one billion Swedish kronor. This goal has
become a reality thanks to higher grain prices, a weak Swedish krona and good
timing in making crop and fertilizer purchases and sales.
2022 was a year of global turmoil, rising inflation and war in SUSTAINABILITY AIDED BY DIRECT FLOWS AND
Ukraine. These events have had a major impact on commodity TRACEABILITY
markets, where prices have increased significantly. Higher prices, BM Agri is experiencing greater demand from its customers for
high demand and a weak Swedish krona have worked to BM Agri’s sustainability, which the company is constantly working to improve. In
advantage. Before the year began, BM Agri set the target of reaching 2021 Absolut Company declared that 400 farms in southern Sweden
SEK 1 billion in net sales and an operating profit of one to two percent. needed to adapt their operations to a number of sustainability
This goal was achieved by investing heavily in the 2021 crop and being requirements. These include increasing traceability and reducing the
able to quickly adapt to the current situation and time the market. use of fossil fuels. BM Agri offers traceability throughout the chain,
BM Agri achieved net sales of SEK 1,177 million and a profit of SEK 29.1 from the farm where the crops are grown to the customer.
million – making 2022 a unique record year!
Another sustainability initiative that has also reaped economic
LARGE INVENTORY AND TIMING ENABLED RECORD benefits is the shift from large boat loads of fertilizer to truck flows
Ahead of the 2022 financial year, BM Agri purchased large quantities going straight from producer to customer. The price of sea freight had
of the 2021 crop that was sold off last spring. This investment tied up already risen between 100 and 200 percent the previous year. This
a lot of capital, but was made possible with the help of the company’s led to fertilizer becoming a very expensive commodity to trade. That
owners, who contributed part of this capital. The existing stock is why it has been advantageous to have direct flows, as BM Agri
purchased in 2021 was sold during the spring to new and existing then avoids major investments in fertilizer and, primarily, expensive
customers and to destinations the company had not previously sold transport costs. At the same time, driving distances and thus also the
to. At the beginning of the year, BM Agri identified rising prices in the climate impact are minimized through the direct flow of trucks.
market, and the outbreak of the war in Ukraine increased demand
along with the price of grain, which has never been higher. The FURTHER EFFORTS TO IMPROVE PERFORMANCE
company’s CEO, Per-Arne Gustavsson, explains: Going forward, BM Agri wants to continue to develop and make
everything a little better all the time. With a new business controller
“We had full stocks when the price reached its peak and were and new business models, the company will become better at quickly
therefore able to sell off the 2021 crop when the price reached a following up on deals to gain an overview of the outcome at an
record level. The low value of the Swedish krona also contributed to earlier stage, something which they hope will lead to them having the
the record year. We export more than we sell within Sweden, and so confidence to do even more, and bigger, deals. This will generate greater
we find it gratifying and beneficial to have a weak Swedish krona. For profit and enable BM Agri to take a stronger position in the market.
this reason the currency has had a positive impact on us, boosting our
ability to pay a reasonable price to farmers.” “Farmers enjoyed a good harvest in 2022, so right now there’s a lot
of grain to trade, which is positive, but less fertilizer, which may make
Another reason for this year’s success is BM Agri’s employees, it difficult to achieve the same level of sales next year,” says Per-Arne
whose ability to adapt to market fluctuations and prevailing Gustavsson.
circumstances has contributed to the record profit.
“The company is expecting the market situation to have normalized
“We have some of Sweden’s best grain merchants in the company, a to a greater extent in 2023, with prices remaining high for grain,
stable and effective finance department and owners who provide good fertilizer and shipping – albeit not as high as in 2022.”
input via the Board,” says Per-Arne Gustavsson. “And we shouldn’t
forget our suppliers, the farmers. Without them, we’re nothing. It’s our
suppliers who entrust BM Agri with managing their grains and oilseeds
and who buy fertilizer from us. Many are both suppliers and customers,
which means we work closely together.”
Per-Arne Gustavsson, CEO
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