“Unprecedented” Scots wheat exports

Frontier Agriculture has despatched what it believes is the first ever cargo of wheat exported from Berwick-upon-Tweed in Northumberland.

The company sourced and loaded the 2,000 tonnes consignment of feed wheat last week onto the Shetland Trader destined for Belfast. It says the shipment was made possible by its access to trade in a wide range of overseas markets.

Berwick-based Frontier trader Nick Baxter explains that Scotland traditionally has a wheat deficit,  but thehuge 2015 crop in the country, totalling over a million tonnes, combined with a dip in demand has created an unprecedented surplus of the commodity.

“Some of the surplus will still be carried into next season, but in the long term, the local prices and market will benefit from any overseas shipments that prevent the excess supply from overhanging the market in future,” he states.

Frontier says it has helped to find markets for the surplus wheat through shipments to other markets from a range of east coast Scottish ports this campaign. This helps secure a better price for farmers supplying wheat to load the boats, as well as reducing stocks and relieving pressure on the market to help support prices going forward.

“Frontier always works with growers to find the best markets for their grain. With another bumper crop and further price volatility forecast for the coming season, that will continue to include looking for international as well as domestic markets,” concludes Mr Baxter.

Posted on April 21, 2016 and filed under Grain Trading, Company News.