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Farmers' cooperative deal could push Crailar into profitability

22/05/2015
Flax company Crailar has grown revenues 300% in the first quarter to $1.7 million and has signed a deal with a flax farmers’ cooperative that it estimates could reduce feedstock costs by 50%.

Investments and debt took it to a net loss of $200,000 for the quarter, but this was compared with a loss of $2.6 million for Q1 2014.

Fiber output volume for the quarter was over one million pounds, an increase of 400% over Q1 2014 and 38% over Q4 2014. 

The company said trials have achieved customers’ goals and it advanced initiatives to reduce feedstock costs. Test plots of flax and hemp have been planted by a 5,000 farmer cooperative, and a deal for a direct-to-farmer programme was signed. 

“Labour inefficiencies created by equipment downtime and feedstock costs continue to dampen profitability,” it conceded.

Related stories:

Crailar sells Belgian plant to reduce overheads 04/09/2015
Crailar forms committee to weigh its financial options 03/06/2015
Crailar confident despite $8m Q4 loss 16/04/2015
Crailar’s CEO resigns after more technical hitches 17/11/2014
Air quality issues mire Crailar’s progress 13/08/2014
Adidas shows faith in Crailar with board seat 27/06/2014
Crailar counts cost of European expansion 19/05/2014
Adidas and Ikea support loss-making Crailar 31/03/2014
FabricLink names top textile innovations of 2013 20/03/2014
Crailar gains favourable customs ruling 10/02/2014
Crailar moves to acquire European dyeing facility 06/09/2013

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