Cereals 2012: Demand fuelling conservation grade contracts

Consumer demand is driving the attractive contracts for conservation grade wheat and oats which were being offered at Cereals 2012 by Frontier Agriculture.

Conservation grade milling wheat will attract a £12-14/t premium over conventional milling wheat, confirmed the company’s Mark Askew, following agreement with Allied Mills to supply wheat for their Allinsons and Burgen brands.

“There’s a need for around 30,000t of wheat this year,” he said. “So we’re recruiting growers to produce any of the group 1 varieties, or group 2 Cordiale, under the Conservation Grade protocol.”

The payment includes a £7/t conservation grade premium, as well as a £5-7/t premium from being able to book a LIFFE futures price, he explained.

Interested growers have to produce their crops in compliance with the agreed protocol, which prohibits the use of some pesticides, and allocate 10% of their land to wildlife habitats. An annual subscription, audit fee and training commitment from the grower are also part of the deal.

The latest conservation grade oats contract is far better than any other oats contract, despite a concerted effort from oat millers to secure supplies, noted Mr Askew. “It offers a £28/t premium, which makes the crop stack up well. The oats concerned are destined for Jordans products.”

You can find more news, new kit, videos and photos from Cereals 2012 on our Cereals 2012 events page.

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