UK grain co-op extends deal with Warburtons

One of the UK’s largest co-operatives has extended its relationship with Warburtons bakers for another five years. Openfield is a grain supplier based in Lincolnshire. It is owned...

One of the UK’s largest co-operatives has extended its relationship with Warburtons bakers for another five years.

Openfield is a grain supplier based in Lincolnshire. It is owned by 2,700 farmers who commit grain to the business, and works with over 4,000 others.

The deal between the two enterprises has been extended until the harvest of 2021 in a move aimed at giving farmers the security and confidence to invest in their businesses.

Sarah Bell
Sarah Bell

Sarah Bell, head of supply chain at Openfield, said: “Over the past 17 years Warburtons has sourced more than two million tonnes of wheat from British farms. This has contributed to over ten billion bread products. This is an unparalleled level of commitment in the grain supply chain and one which has delivered great value for all parties. We look forward to taking the relationship further.”

Warburtons and Openfield have a unique relationship in that the baker offers a minimum price premium over base feed wheat values beyond a single season. This enables growers to have confidence in the long-term.

Ms Bell said: “Growing milling wheat to a defined specification takes skill and confidence. By offering a minimum premium guarantee and contracting for five years the grower has the confidence to invest in equipment and storage systems while the variety assessment programme helps to develop and hone the plant material needed to meet quality specification.

“At a time when the market is exerting great pressure on growers, the value of a long-term contract is a source of great reassurance.”

UK’s largest grain co-op announces £6.6m turnaround in profits

Openfield formed in 2008 after a merger between Centaur and Grainfarmers and handles 4.5 million tonnes of grain every year.

As well as providing security and reassurance, developing long-term relationships and business partnerships also allows farmers to focus on sustainability of their grain production, such as healthy soil, good water stewardship and supporting biodiversity.

Earlier this year, Openfield announced a £6.6m turnaround in fortunes with reported profits of £2.4m before tax for the year up to 30 June 2015. This came after a loss of £4.2m in 2014, blamed on poor harvests in 2012 and a reduction of sowing in 2013.

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