Complications of poor-quality wheat marketing

The challenge of marketing low specific weight wheat crops continues, widening the range of ex-farm prices and complicating contracts.

“Farmers need to test and retest samples, speak to more than one merchant, establish likely claims and check documents and contract notes,” said Guy Gagen, chief combinable crops adviser at the NFU.

Some new contracts were being agreed on a lower specification and much lower price than for standard 72kg/hl feed wheat, only for growers to then find that even the lower price was being scaled back to account for low specific weight, said Mr Gagen.

This highlighted the need to take good notes when the deal was being done, clarify the basis of any agreement and to check paperwork when it came through.

Blanket national discount scales for grain that does not meet contract quality no matter what the destination is should also be challenged, said Mr Gagen. Different intakes and local conditions meant there was a very wide variation in what could be used by different buyers even within a local area.

“We continue to challenge this very strongly – it’s not an appropriate model, although it might be in a different year.

“The market is differentiated by geography and specific requirements of individual homes. I would suggest any merchant suggesting otherwise and issuing a standard national scale is sailing close to the wind.”

Blanket national penalty scales were not justifiable on individual loads without a linked pre-estimate of loss. There were also examples of claims being issued before loads were moved.

Very low bushel weight crops could find homes with certain mills taking the trouble to work out what they could use, there was also inter-farm trade, potential for some carryover as in previous years, as well as opportunities to blend and dress samples.

NFU harvest survey

The late start to harvest means that the NFU’s annual harvest survey results may be out slightly later than usual.

The survey is still open, with a grain temperature monitor the prize in a draw for those who take part.