New contract for linseed growers
Specialist crop firm Premium Crops is trying to attract more spring linseed growers for 2011 to supply rising demand for the oilseed.
The company is offering farmers a forward contract price of £350/t and/ or a 20% premium over the oilseed rape price.
It has also overturned many other normal linseed trading practices. For example, it will buy produce from a set area rather than a fixed tonnage; it will accept up to 10.5% moisture and 5% admixture without claims or rejection; and it is guaranteeing no capped load charges.
“In practice most growers are opting for a 50:50 split, with half of their crop fixed at £350/t and the other half at 20% over rape, equivalent to more than £370/t at current rape prices,” said Premium Crops director Nigel Bazeley.
“With these price levels and the added flexibility on quality that this contract provides, linseed will be the most profitable break crop for the coming season and we expect to see the area rise accordingly.”
Premium Crops says the use of linseed in animal feed has contributed to the rising demand for the crop. UK animal feed supplier BOCM PAULS has trialled Lintec (a linseed-based feed) with 50 dairy herds over the past year and the firm is now supplying the product as a straight, in blends and in compound feeds.