Allied grain deal will cut costs
IN the first deal of its kind, Sussex-based co-op Chichester Grain has appointed Allied Grain as marketing agent for its members.
Allied will market 35,000t of grain for the co-op each year and will also help Chichester Grain increase its storage revenue by gaining third party business in its existing 24,000t store. This will cut costs for Chichesters 37 members, who previously marketed their product through Centaur Grain. "The key benefit is the ability to look for other ways to make money out of our store," says Chichester chairman, Simon Walter.
"We were also trying to get closer to the market place, and you cant get much closer than dealing with Allied."
The co-op is redeveloping its Hambrook site to handle the extra work. Two 4000t stores will be completed in time for harvest, with one dedicated to storing malting barley for Allied. The emphasis will be on growing crops for specific markets, including a number of Allieds sister firms, like ABN, Allied Mills and Ryvita. *