MINNEAPOLIS, MINNESOTA, US — Ceres Global Ag sustained a loss of $379,000 in its fiscal 2025 second quarter, which compared with net income of $3.8 million during the same quarter a year ago amid what the company described as challenging macroeconomic and harvest conditions.

Revenue in the second quarter ended Dec. 31, 2024, fell by $62.2 million to $220 million. Operations during the second quarter came in at a loss of $407,000, which compared with income of $3.7 million in the previous year. Handle volumes increased by 12.5% year on year.

“By leveraging our network of assets and experienced team while expanding our supply chain partnerships, we were able to navigate the challenges of operating in a lower-margin environment,” said Tom Coyle, interim president and chief executive officer. “Our Berthold Farmers Elevator joint venture performed well this quarter and provided strong origination volumes. Furthermore, our Supply Chain Services and Seed Retail segments have continued to build on the momentum from the first quarter, resulting in strong year-to-date volumes in both segments.”

Together with its affiliated companies, Ceres operates 10 locations across Saskatchewan and Manitoba, Canada, and Minnesota. These facilities have a total grain and oilseed storage capacity of approximately 29 million bushels. Ceres also owns membership interests in three agricultural joint ventures that have an aggregate grain and oilseeds storage capacity of about 16 million bushels.

During the quarter, Ceres closed on the sale of its Beausejour, Manitoba, Canada, facility, a seed retail and crop inputs operation, on Nov. 14, resulting in a gain of $316,000.

“Through the rest of the fiscal year, we are forecasting adequate local crush margins driven by ideal local production,” Coyle said during an earnings conference call on Feb. 13. “Our ability to source local soybeans remains a key driver to enable Jordan (Mills) to continue to crush at high capacity and realize adequate margins.”

Jordan Mills in Roland, Manitoba, crushes more than 2.7 million bushels of Manitoba and Saskatchewan soybeans annually to make express soymeal and soybean oil for animal feed ingredients in Western Canada.

Regenerative agriculture remains a key initiative in the Grain segment to build strong relationships with Ceres’ customer base as they strive to meet consumer demand, Coyle said. The company enjoyed solid expansion of the program in 2024 with a six times growth in enrolled acres and achieved a 100% retention rate for grower partners, Coyle said. As the 2025 planting period begins, Ceres expects to increase both acreage and farmer participation.

Looking ahead, Coyle said the shifting landscape of Trump administration tariffs have the potential to disrupt existing trade flows among the United States, Canada and Mexico, and Ceres is adjusting trade strategies and market positioning to adapt as conditions change. 

As winter draws to a close, Coyle said Ceres also will be monitoring weather conditions and planting forecasts for the Corn Belt, Northern Plains and Canadian Prairies to best position the company for the year ahead.

For the first six months of the 2025 fiscal year, Ceres’s adjusted net income was $1.76 million, a drop from $9.1 million for the same period a year ago. Revenue fell 15% to $422 million compared to last year, primarily due to lower prices across core commodities.