Dont blame us for costs, traders tell NFU
By FWi staff
THE NFUS recently launched campaign to tackle rising penalties and deductions on ex-farm grain provoked a strong reaction from grain traders at Cereals 2000.
Robert Kerr, of Glencore Grain said the NFU, which accused grain merchants of being “all too quick” to impose penalties, is aiming at the wrong target.
“In most cases it is the end-user who imposes these charges; all we ever do is pass them on. We operate an open-book policy which anyone can inspect.”
Jon Duffy of Gleadell Banks, agrees. “Whenever we put contracts on farms they are for a very clearly defined quality.
“Ultimately it is the farmers who are responsible for meeting this quality.
“However, we are well aware of the pressures farmers are under. We bend over backwards to keep costs to an acceptable minimum.”
The NFU also called for averaging of lots of farms.
“We will do this,” said Mr Kerr. “But there is an element of risk involved so we might price the contract at 1/t discount. But farmers dont want to know – they go for the highest price.”
Mr Kerr conceded that the NFU might have a point when it claims that some charges, notably for low specific weights, were probably too high.
These have not changed in three years despite the price of grain halving in that time. “Perhaps this is a bit of history that could be revisited.”
However he remained critical of the campaign. “All this is doing is creating us v them. Its crazy – if the NFU wants to talk then lets talk.”
But all parties should be involved – exporters, consumers, farmers and the trade, he added.
Mr Duffy suggests four ways farmers can minimise claims:
- Do your own sampling;
- Know what you have;
- Condition grain;
- Match grain to market.