- BAIN has closed the third quarter and is marketing 24,469 tonnes of nuts.
- Tonnes produced on farms owned by BAIN increased by 8.9% compared to the previous year.
- BAIN keeps 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.
April 9, 2021. Borges Agricultural & Industrial Nuts (BAIN), one of Borges International Group’s subsidiaries, has closed the third quarter of the fiscal year, as of 28 February 2021, with a net amount of the cumulative turnover of 107,6 million euros and 24,469 tonnes of nuts marketed.
Turnover has fallen by 23,5% 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 and by the lower volume marketed for nuts decreasing by 5.6% and by 33.1% in the marketing of by-products, compared to the same period of the previous year.
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 5.3% in nut production. In relation to pistachios 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, such as almonds, nuts and pistachios. The price of almonds has experienced a sharp drop decreasing by 38% since mid-January 2020 from 6.00 euros per kilo to 3,75 euros at the end of the third quarter. 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 Result at 3.2 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 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 third quarter of the financial year has marketed its products in 57 countries. Exports accounted for 51% of its turnover, reaching 40.3 million euros, reaffirming the company’s international profile. Almonds are the best-selling product by the BAIN Group, reaching 59% 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 2.628 hectares located in California, Portugal and Spain, of which 1,520.7 hectares are in production, and 403.6 will gradually enter production in the coming years. The total hectares include 295.9 hectares of the Pistachio Project BAIN, 67% higher than the previous quarter, the result of vertical cooperation with producers, offering an alternative for the improvement of agricultural income, a project that in 2022 is expected to 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 accession 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 in the Casarente farm in Badajoz, 36.1 Has. on the Cuartillo 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, having obtained certification in 2019 of 69.4 Has. Palheta farm at Portugal, in 2018 of 82.7 Has. of the Cantillana farm in Badajoz and in 2017 of 129.9 Has. Carquí farm in Granada.
In addition, the Company devotes a total of 104.1 hectares to the conservation of the environment and biodiversity.