FARMWAY, the regional farming co-operative, has enjoyed another year of growth.

Turnover increased to more than £25m and profits rose to £300,000 in the year ending November 30.

John Hutchinson, chairman, told a pre-agm press conference that steady progress had been made over the last few years. The results of a strategic review of the business were also beginning to show.

The Piercebridge-based business increased turnover by £4.8m to £25.4m. Profits grew by £50,000 to £300,000 which, after payment of tax and interest on members' shares, resulted in £191,000 being transferred to reserves.

Over the last ten years, more than £1m has been paid to members and a further 3.5pc interest on members' qualifying share capital was announced.

All parts of Farmway performed well, except for potatoes, which were hit by the smaller harvest.

FeedCo, the company's joint venture with Lloyds Animal Feeds, produced a record 75,000 tonnes of animal feed at the Piercebridge mill.

Sheep feed sales, in particular, reached a record level, partly because of a rise in customers within Farmway's trading area, which stretches from the Humber to the Scottish Borders.

A three-year, £1.7m investment programme in the mill will increase capacity and provide consistent feed quality to match the toughest quality assurance standards.

GrainCo also proved a winner.

Peter Hull, Farmway chief executive, said its grain marketing pools were among the best in the industry, giving members above average returns.

Its October to December pool price for feed wheat was £90 a tonne - believed to be the highest in the country - while oilseed rape was £174-£175 and feed barley £81.

"When you look at the price offered at harvest time, committing to the pool has been particularly advantageous to the farmer," said Malcolm Rayfield, vice-chairman. "The amount committed is already up this year."

John Seymour, director, said there was much volatility in the grain market. "We think that will continue and believe pooling grain is the best way to safeguard returns for farm businesses," he said.

It was pointed out that some farmers elsewhere had sold forward at £70 a tonne - £20 less than the pool price.

GrainCo's trading operation in Scotland was re-named GrainCo-Scotland and traded significant volumes.

Cereal and herbage seed sales recorded strong increases and fertiliser sales and volumes were also up.

The re-branded Farmway Country Stores saw sales rise 16pc to £7.4m. The successful refurbished store in Leyburn is to be the blueprint for another in Hexham.

The petrol station and shop at Morpeth sold 5.5m litres of fuel and Farmway is to develop another, with a store and country store, at Bowburn.

Equestrian sales topped £1m for the first time and have already shown a 20pc increase this year.

During the year, Farmway also acquired Hall-Shaw Farm Supplies, a leading supplier of animal health products, which has proved successful.

Mr Hutchinson said Farmway remained a strong, independent and financially sound, farmer controlled business.

"There are many changes occurring in the agricultural supply industry and we will continue to examine all opportunities which present themselves to us," he said.

Lord Barnard has retired as president after 38 years and is succeeded by Robert Campbell of Stokesley.