Lantmannen has launched a drive to cut SEK300m from costs, and said there is "substantial potential" for more, after falling sales of feed, grain and machinery sent the farm co-operative into a loss.

The Nordic agribusiness said it was drawing up a three-year plan of "efficiency measures" on top of initial measures to reduce administrative costs cut working capital by 10%, and impose tighter criteria on its investments.

"The recession is placing heavy demand on our ability to adapt and streamline our processes," Per Stromberg, Lantmannen's chief executive, said.

Dairy impact

The clampdowns follow a fall into a SEK71m ($8.9m) loss for the first quarter from a SEK342m profit a year before.

Revenues fell 13% to SEK8.6bn ($1.08bn), led by a 26% fall to SEK2.51bn in takings at its core Lantbruk farm sales and crop processing business, thanks to weaker demand for fertilizer, grain and feed.

"A substantial reduction in the number of dairy cows led to a decline in sales of cattle feed," the group said.

Sales at the group's machinery business fell 21% to SEK1.49bn.