- BAIN has closed the first half of the market for 17,381 tonnes of nuts.
- Tonnes produced on farms owned by BAIN increased by 8.9% compared to the previous year.
- BAIN continues investing in the development of its agricultural project with a clear focus on sustainability reaching a total of 953 has certified with the Global GAP.
Borges Agricultural & Industrial Nuts (BAIN), one of Borges International Group’s subsidiaries, has closed the first half of the fiscal year, on the 30th of November 2020, with a Net Turnover amount of EUR 76.3 million and 17,381 tonnes of nuts marketed.
Turnover has fallen by 22.6% compared to the previous year caused mainly by the price reduction of the main raw materials marketed by the group such as nuts and almonds.
Tonnes produced on farms owned by BAIN increased by 8.9% compared to the previous year, mainly by obtaining the first almond harvests of 672.5 new hectares that have increased production by 85.4% and 5.4% in nut production. In relation to pistachios, its production has decreased by 50.4% due to its on/off cycle, this year being an OFF one.
The Consolidated Income has been mainly affected by the impact of the FIFO system resulting from falling commodity prices. The price of almonds has experienced a sharp drop decreasing by 45% since mid-January 2020 from 6.00 euros per kilo to 3,29 euros at the end of the first semester. The application of the FIFO method in the marketing of this product implies that, for current sales, at market prices at the time, they are allocated the cost of the oldest purchased product, at higher prices, to cover medium and long-term sales made on the basis of prices at that time, causing a transfer of results in the coming quarters, when the opposite effect is expected to occur.
This fact, together with a slight drop in sales, have placed the Consolidated Income at 2.6 million euros of negative result.
These figures do not, in large part, include the potential benefits of the PALM agricultural development plan, initiated by BAIN in 2016, which has consisted of the planting of 1,145.1 new hectares for almond production, which have gradually started production to peak production in the coming years.
International presence
BAIN in its commitment to internalization during the first half of the financial year has marketed its products in 54 countries. Exports accounted for 52.8% of its turnover, reaching 40.3 million euros, reaffirming the company’s international profile. Almonds are the best-selling product by BAIN Group, reaching 60% in value of total sales, followed by nuts, with 13% of the total.
BAIN is firmly committed to the agricultural business
BAIN manages a total of 2.509 hectares located in California, Portugal and Spain, of which 1.496.3 hectares are in production, and 430.6 will gradually enter production in the coming years. The total number of hectares includes 177.2 hectares of BAIN Pistachio Project resulting from vertical cooperation with producers, offering an alternative for the improvement of agricultural income, it is expected that in 2022 this Project will reach 500 hectares, with more than 50 affiliated producers from the provinces of Huesca, Lleida and Tarragona.
BAIN’s business project has a clear sustainability approach
BAIN’s new plantations are governed by sustainable agriculture criteria. Following the adherence to the EsAgua platform, whose objective is to position Spanish companies as benchmarks in the water footprint and in the field of sustainability, BAIN has initiated the GLOBAL GAP (Good Agricultural Practices) certification process, one of the international standards for good agricultural practices and sustainable agriculture. Throughout this exercise the certification of 81.5 hectares has been obtained at Casarente’s farm in Badajoz, 36.1 Has. on the Cuartillo’s farm in Badajoz, 386.2 Has. on the Machados’ farm in Portugal and 167.2 Has. on the Benavides’ farm in Badajoz, bringing BAIN to 953 Certified Has, after having obtained the certification in 2019 of 69.4 Has. from Palheta’s farm in Portugal, in 2018 of 82.7 Has. of the Cantillana’s farm in Badajoz and in 2017 of 129.9 Has. from El Carquí’s farm in Granada.
In addition, the Company devotes a total of 104.1 hectares to the conservation of the environment and biodiversity.