Grain giant forms major US alliance
Grain giant forms major US alliance
GRAINFARMERS, the UKs largest farmer-controlled business which trades 2.3m tonnes of grain annually, has formed an alliance with the worlds second biggest grain shipping company to take better advantage of the international market.
US-owned Louis Dreyfus ships 30m tonnes of grain and oilseeds a year – 15% of the world total – and will be responsible for marketing the firms wheat into the global market place.
Grainfarmers managing director Tim Pollock said: "Tradition-ally our exports have been to the EU. We have been reluctant to sell to countries outside Europe because we are not big enough to operate with them directly."
He is hoping the new deal will give access to value-added opportunities in markets such as north Africa and Korea.
He reckons this will be particularly important in a year when the UKs exportable surplus could top 4m tonnes. "Securing export markets will be critical to enhancing ex-farm price levels for our farmer suppliers." *
But he stressed the home market will remain the top priority. "Our domestic customers are our bread and butter and will still make up 75% of the business."