Fengrain and Crisp Maltings to launch joint storage venture

[llamedos]

Fengrain, the grain marketer based at Wimblington, near March, is launching a joint storage venture with Crisp Malting Group at Great Ryburgh, near Fakenham, which will strengthen the supply of barley to the maltster.

Bob King, commercial director at Crisp Malting Group, said construction of the four new silos, located next to the firm’s existing storage, is expected to start on January 4 and be completed during the coming harvest.

The new facility will be owned by Fengrain on land leased from Crisp Maltings
http://www.edp24.co.uk/business/far...ngs_to_launch_joint_storage_venture_1_4357242

http://www.fengrain.co.uk/news.php

 

[Grain Buyer]

my initial thought is- Why build on someone else's site? They'll incur haulage at some point, be that at harvest, or later at the point of delivery.

 

[foxbox]

my initial thought is- Why build on someone else's site? They'll incur haulage at some point, be that at harvest, or later at the point of delivery.

I guess if delivered to central storage and then outloaded to the end user the grain is being handled twice, however the visit to central store offers the chance for drying etc if needed, is this in place on the new site or will grain be expected dry upon arrival? It's also possible grain is leaving the area of the end user to travel to central store before returning, adding extra transport that would otherwise be avoided?

It sounds as though the end user is a little unhappy with what has been supplied so far too?

 

[Honest john]

It locks out the likes of Froniter, No.

 

[Grain Buyer]

would you build on leased land?........hang on, isn't this the whole argument of central storage? If you don't own the farm and can't build a store you buy CS space?

 

[Brisel]

It just seems that Crisp are outsourcing the storage to a professional storer like Fengrain who would otherwise be double hauling members grain to Crisp anyway. They are just getting into bed together.

Central storage at the point of sale reduces transport costs, as mentioned above. Lingrain at Boston has the lowest handling charges of all stores marketed by Openfield thanks to multiple usage of each silo - only export grades are stored there and ongoing transport costs are only the elevators to the dockside. A 46,000t store with a throughput of 300,000t/year.

I'd say this forms the base of Fengrain's thinking rather than expanding an existing store miles from anywhere.

Don't you have a reasonable amount of storage next to some of your consumers @Grain Buyer ?

 

[rob1]

Sounds like some here are suffering from sour grapes, strange how central storage is such a bad idea and yet more and more grain is been handled/ sold and stored like this

 

[Honest john]

It sounds to me a good move.
Build a few silos at a Consumer, fill them many times a year, work closely with said Consumer, provide a good service & lock out other surplyers.

FenGrain have a top class Chairmen, top man as finance director, very good salesmen, & a sound Board.
It's a good team ATM. Much to like.

 

[spikeislander]

I get on very well with fengrain they have been fair over the years and always there or there abouts on price.

 

[foxbox]

would you build on leased land?........hang on, isn't this the whole argument of central storage? If you don't own the farm and can't build a store you buy CS space?

I guess that depends upon how long the lease is for though?

 

[Pieces_of_Eight]

It's simply a two way back scratching exercise, a sort of vertical integration.

Crisp get a secure supply of the barley they want at a known quality, while Fengrain get a contract to supply for an extended period.

As always, the devil will be in the detail.