Bioethanol Ltd and Centaur Grain have sweetened the contract for farmers to supply their bioethanol plant at Immingham, Humberside.

Bioethanol Ltd’s chief operating officer Andrew Morris warned farmers needed to support the UK biofuels industry now, or risk losing out to other countries like Brazil.

In an effort to encourage more to sign up Centaur and Bioethanol Ltd have adjusted their contract, which they said would now pay £23/t more than the average price for feed wheat over the past six years.

Centaur’s commercial director Graham Lacey said farmers had already committed the equivalent of the plant’s first two years’ worth of fuelstock.

But he admitted that last autumn’s rally in wheat prices had made farmers more wary of committing to long-term contracts.

Under the improved deal, an extra £3/t was being offered on the base price and a new ethanol premium had been introduced, said Mr Lacey.

This would allow farmers to share in the success of the plant and would pay an extra £4.50/t if sales targets were exceeded by 10%.

In total, Centaur said farmers within a £5/t haulage radius of the Immingham plant could receive £90.75/t for wheat delivered in 2008/09 rising to almost £98 for 2012/13.

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