Bord na Móna - Source Issue 12 - (Page 8)

BROWNGOLD THE BUMPER PEAT HARVEST OF 2013 RESTORED THE COMPANY'S FORTUNES - AND ITS MORALE. HOWEVER, STOCKS NEED TO BE REBUILT IN ORDER FOR THE POSITIVE IMPACT TO CONTINUE T he peat harvest of 2013 was the company's best year of production in terms of the number of harvests achieved. Coming in at 166 per cent of target, this was a huge increase on 2012's harvest, which came in at 37 per cent of target in one of the wettest summers on record. The impact on the company has been significant. Stock levels were precariously low at the end of 2012's harvest, resulting in a lower volume of peat available to supply the peat-generating stations, briquette factories and professional horticulture customers. This meant that, in particular, the peat-generating stations were not operating at full capacity. A poor harvest in 2013 would have meant even greater difficulty supplying these stations and professional horticulture customers. So, in effect, 2013's bountiful harvest has eliminated the near-term issues of peat supply. Not surprisingly, the good harvest also had 8 | Source Winter 2013 a positive financial impact on the company. In the short-term, it lowered the cost of peat going into the peat-generating stations because fixed costs were spread out over a larger volume of peat, reducing the cost per unit. In addition, the harvest will benefit the profitability of the company this year and help Bord na Móna to meet its financial targets next year. In that regard, the 2013 harvest has largely reversed the negative impact of the 2012 harvest. Some of those negative impacts involved the introduction of shorttime working which has now been reversed as those savings are not now required. And the company is going to look at renewing its investment in discretionary expenditure such as marketing, advertising and promotion, which was cut temporarily to achieve muchneeded cost reductions last year. However, stocks need to be built up so that Bord na Móna is better positioned - financially and in production terms - to withstand any future events that affect the harvest. Given that the company will be using its stock through the winter - via sales and supply - it is believed that a good harvest in 2014, leaving the company with even more stock than available this year, would place the company in a much stronger position. Undoubtedly, the real success story lay in the willingness of Bord na Móna's best asset - its people - to shoulder the savings necessary in 2012 and to produce a record harvest in 2013. OUT IN THE PEATLANDS The Feedstock business and its employees were in the eye of the storm in 2012 and on the crest of a wave in 2013. Coming out of 2012's wet summer, Feedstock had to look at ways to increase its productive capability for 2013.

Table of Contents for the Digital Edition of Bord na Móna - Source Issue 12

Bord Na MóNa - Source Issue 12
Contents
News
Brown Gold
A Bright Future Beckons
Clean Energy Hub
A Good Year
Game On!
Sales Force
Project Update
Heritage Corner
Nationwide

Bord na Móna - Source Issue 12

http://europe.nxtbook.com/nxteu/zahra/source14
http://europe.nxtbook.com/nxteu/zahra/source13
http://europe.nxtbook.com/nxteu/zahra/source12
http://europe.nxtbook.com/nxteu/zahra/source11
http://europe.nxtbook.com/nxteu/zahra/source10
http://europe.nxtbook.com/nxteu/zahra/source9
http://europe.nxtbook.com/nxteu/zahra/source8
http://europe.nxtbook.com/nxteu/zahra/source7
http://europe.nxtbook.com/nxteu/zahra/source6_acc
http://europe.nxtbook.com/nxteu/zahra/source6
http://www.nxtbookMEDIA.com