Wednesday, April 24, 2019

Fengrain and Frontier agree new trading partnership

February 1, 2019 by  
Filed under Crops

Farmer-owned cooperative Fengrain has agreed a new trading partnership which will see Frontier to market all its grain for the foreseeable future.

Fengrain directors agreed to enter into exclusive negotiations with Frontier Agriculture over the subcontract of the cooperative’s grain trading and grain marketing activities which were previously carried out by Fengrain Services.

Fengrain trades about 800,000t annually. Its grain storage and grain handling activities will remain under the ownership of its existing farmer members, said the Cambridgeshire-based cooperative in a statement last month.

Negotiations

The statement said it was Fengrain’s intention to report on the outcome of the negotiations and to communicate full details of the new arrangements to Members by mid-February. It is anticipated that grant of the subcontract will take place no later than the 31 March.

Speaking about the board’s decision, Fengrain chairman Paul Wilkinson was positive about the way forward. He said: “Global and domestic markets remain volatile and unstable making grain trading increasingly more challenging.

Market volatility

“By concentrating on our core storage activities we can subcontract our grain trading and marketing to Frontier which has the scale and financial capacity to trade through market volatility to the benefit of their grain marketing customers.

“I am excited by this new business model which I believe will add value to our members and serve all our stakeholders well into the future.”

Frontier managing director Mark Aitchison said he pleased to have reached an agreement. “Frontier has a well proven track record of providing grain marketing, risk management and grain trading services to farmer-owned grain businesses.

“With our complete understanding of the farm gate and our wide access to upstream markets we can bring something unique to Fengrain members and farmer customers – helping to maximise their grain marketing performance and protecting their storage investments.”

Based at Wimblington, near March, Fengrain has over 40 years knowledge and expertise in the UK grain industry. Activities have included providing grain trading and storage for members and third parties in East Anglia and Kent.

Crop production and grain marketing business Frontier Agriculture – which has an annual turnover of about £1.5bn – was formed in 2005 as a joint venture between Associated British Foods and Cargill. It has 46 sites across the UK and employs 1,100 people.

As well as grain marketing, Frontier supplies seed, crop protection products, fertiliser and agronomy services to farmers. It has a team of 160 agronomists.

studiopress

barbour pas cher barbour pas cher barbour pas cher barbour pas cher barbour pas cher golden goose saldi golden goose saldi golden goose saldi golden goose saldi golden goose saldi doudoune moncler pas cher doudoune moncler pas cher doudoune moncler pas cher doudoune moncler pas cher doudoune moncler pas cher moncler outlet online moncler outlet online moncler outlet online moncler outlet online moncler outlet online