Openfield, Britain’s largest farmer- owned arable trading business, has not had its marketing arrangement with giant grain storage co-op Camgrain renewed.
Openfield has acted as marketing agent for Liston, Cambridgeshire, based Camgrain for 10 years and across the co-op’s four sites in east and central England has marketed around 500,000 tonnes annually.
The marketing business has been awarded to Frontier, which is owned jointly by Associated British Foods and international grain trader Cargill plc and claims to market 4.5 million tonnes annually or around 22% of the UK harvest
Openfield, which has 2,700 farmer members, is also involved in trading around 4.5mt. Of that, around one million tonnes is marketed from 18 Openfield Network central stores including Angus Cereals at Montrose and Aberdeen Grain at Whiterashes.
The stores are owned by the members of each group, with Angus Cereals having drying and storage capacity for 40,000 tonnes and Aberdeen Grain for 65,000 tonnes.
Bruce Ferguson, who until this spring managed both sites for Openfield, is now general manager in Scotland for Frontier.
It was clear from an Openfield press statement that the company is bitterly disappointed to have lost the flagship Camgrain business.
“Given our clear strategic aim of returning value to farmer members through building unique supply chains with end consumers, we are disappointed not to be reappointed to market grain on behalf of Camgrain after 10 years of successful collaboration between two farmer-owned businesses.
“Over this period we believe that we have made a significant contribution to the development and growth of the Camgrain business,” the statement said.
“This has included marketing grain efficiently and effectively, investing significantly in storage space at Camgrain, and introducing the Kettering Project concept and the Northamptonshire farmer group to Camgrain.”
Openfield was formed in 2008 following the merger of Centaur and Grainfarmers, and over the years has been heavily committed to developing sites such as Aberdeen Grain and Angus Cereals, and recruiting members to buy into central storage and processing facilities.
Asked whether the Camgrain situation would affect Scottish operations, Openfield chief executive James Dallas said: “We are delighted with our relationship with Angus Cereals and our supply chains with Boors Malt and Chrisps.
“There will be no change in strategic direction, and we continue to invest in the site and in storage.
“As far as Aberdeen Grain is concerned I know it is also reviewing its contract and at the moment I am not sure which direction that will take, but I can say that from the Openfield point of view we are disappointed to have lost the contract.
“Our members have, however, been very supportive of our strategy and have bought into our concept. As a farmers’ cooperative the returns go to members and not to foreign shareholders.”
On Thursday night Alex Sanger, chairman of Angus Cereals, said: “It is business as usual at Angus Cereals and as it is Openfield are our marketing agents.
“It is worth pointing out that without Openfield input we would not have got off the ground in developing the business. I don’t yet know if the Camgrain situation will have any effect on us. It is well outwith our area.”
Ian Cruikshank, chairman of Aberdeen Grain, said: “I don’t think it will make any difference to us. It is an Openfield matter and shouldn’t affect our position.”