Frontier Agriculture looks to purchase Aberdeen Grain

Major agronomy and grain trading group Frontier Agriculture has confirmed intentions to purchase farmer-owned grain co-operative Aberdeen Grain.

The proposed acquisition would include Aberdeen Grain’s existing operations and its 65,000t storage and drying facility at Whiterashes, Aberdeen.

A joint media statement issued by Frontier Agriculture and Aberdeen Grain said the proposal had the support of both boards and a period of due diligence had begun.

Aberdeen Grain has more than 180 members, who have been informed of the plans, and a formal members vote is due to take place this spring.

See also: Frontier Ag boss anticipates improved finances after tough year

If the purchase is approved by members, Frontier will gain ownership of the store, and the co-operative will be wound up.

The joint statement said:

“It would allow members to continue to access the store on the same basis as they have over the past five years, with grain from 2026 onwards handled through agreements with Frontier linked to existing tonnage allocations.

“The proposed structure also has the potential to support more stable returns for members in the current market environment.

“All existing Aberdeen Grain staff would transfer to Frontier under Tupe [Transfer of Undertakings Protection of Employment], with no redundancies envisaged.

“Grain currently in storage will continue to be marketed as normal, with members expecting payment in August in the usual way.”

Imbalance

NFU Scotland raised concerns of a growing power imbalance between Scottish producers and processors and retailers, with margins being eroded.

A spokesman for NFU Scotland said:

“We hope this acquisition safeguards the value of grain stored, as well as the value of shares held by Aberdeen Grain’s farmer members.

“In a very difficult grain market, where farmers have limited power within the supply chain, it is unfortunate to see further consolidation of grain merchants, with fewer players holding more influence.

“The loss of a Scottish farmer-owned co-operative is also regrettable; such co-operatives are owned and governed by farmers and exist to return value to them.

“However, returning stable returns for farmers in this current market is our priority, and we hope that Frontier and Aberdeen Grain can come to an arrangement that safeguards the store for the future and minimises impacts to Aberdeen Grain’s members’ businesses.”

NFU Scotland also urged farmers to respond to an ongoing government consultation related to fair dealings within the combinable crops sector, which closes on 4 February.

A spokesman added:

“Global shocks, such as pandemics, geopolitical instability, and supply chain disruptions, further reinforce the need for shorter, fairer, and more resilient local food supply chains.

“Ensuring fairness is therefore not only a matter of equity – it is fundamental to food security, the long-term viability of farm businesses, and Scotland’s reputation as a producer of high-quality food.”