BATA, the Amotherby-based farmers' co-operative, has announced record profits despite the plight of the farming industry.

Its 4,500 members will be told at its annual meeting in December, that BATA - the Brandsby Agricultural Trading Association - had a record turnover in excess of £40 million and a profit of £1.6 million.

It has 11 branches which cover an area stretching from the Tees to the Humber and inland from the North Yorkshire coast to the A1.

Chief executive Steven Clarke believed the reason for the excellent year was due to members of BATA's board deciding to diversify over the years into a wide range of other goods and services while still concentrating on its core business of supplying farmers.

As well as servicing its vast membership, the 111-year-old co-operative has branched out into selling saddlery equipment, clothing, fuel, a garage business at Helmsley, and country stores as well as a garden centre at Easingwold.

It employs some 150 staff and, believed Mr Clarke, was an influential voice in Ryedale's economy.

Its animal feed mill at Amotherby had gone from strength to strength, he added, and BATA's position had been boosted as part of United Farmers, which acts as a buyer for the co-operative.

"The outlook is challenging" said Mr Clarke, who added that BATA was working hard to ensure its farming customers remained in the industry during difficult times. There was uncertainty over single farm payments.

Increased efficiency in farming had resulted in a decreased demand for commodities, but BATA had gained new customers and sales of compound feeds was ahead of previous years.

Ken Harrison, who has been chairman for the past two years and a board member for five years, said he was concerned for the future of British agriculture, which was why BATA had diversified its business interests.

Its oil and gas services, like many other parts of its operations, were providing a valuable service to the community, he said.

It had invested in new businesses in new locations, including a garden centre at Easingwold. It had sold the old flax mill at Easingwold which had added to the bright picture of the current year's accounts. "But even without that sale it would still have been a very good year for BATA," said Mr Harrison.