Warburtons Contract

[An Gof]

They may have been serving them well for many years, however I expect Warburtons are looking the the risk in their supply chain?

Can you imagine the damage to their business if openfield went under. Especially if it was a high price year and they had to go to the open market and buy in their requirements at £30 above the contract price.

Are you expecting or suggesting to us to read between the lines?

 

[principal skinner]

They may have been serving them well for many years, however I expect Warburtons are looking the the risk in their supply chain?

Can you imagine the damaged to their business if openfield went under. Especially if it was a high price year and they had to go to the open market and buy in their requirements at £30 above the contract price.

Openfield more likely to go under than Frontier???

 

[An Gof]

Openfield more likely to go under than Frontier???

What do you think?

 

[jack6480]

Maybe openfield are giving frontier just enough rope

 

[principal skinner]

What do you think?

I don’t know, I’m asking a question

 

[An Gof]

I don’t know, I’m asking a question

Ah, the old Cornish fishing technique, throw a sprat to catch a Mackerel

 

[chaffcutter]

Frontier 50% or more owned by Cargill, one of the biggest private companies in the world, based in food but diversified into lots of other stuff.......I don’t think Frontier are a risk financially, but that’s the only good thing about them imo.

 

[Farmer-George]

Openfield more likely to go under than Frontier???

Who knows? How much credit insurance can you get on both?

 

[teslacoils]

It's sad in a way that a UK coop has lost our here to a company associated with the horror that is Cargill.

But as a firm, frontier are just so much easier to deal with. Is it another example to show that UK farmers simply aren't compatible with cooperation?

 

[Lincsman]

Must be 20 years ago that I grew for Warburtons via Lingrain, i stopped after the first year of pools and no option, I did better on the open market without a fee.

 

[homefarm]

I have had a little insight over the years and think Frontier market themselves and our therefore our crops better.
In my experience they take the time to understand exactly what the buyer wants and then deliver on that spec not necessarily what is on the contract given to the farmer.
I once heard a large malt barley buyer describe Openfields barley as "just on spec blended rubbish".

If I was a buyer for a major brand where the success of the business depended on quality and quantity of the grains delivered then Frontier would get my business.

The way Frontier deals with farmers is perhaps different but it is a bit like herding cats, getting us to sell then deliver a product which can vary so much year on year and region by region must be a nightmare.
We can only deliver what we have produced, I think if we are honest with them they will find the best home for it.

 

[Bignor Farmer]

We’ve been Warburtons growers for as long as I can remember. The trouble in recent years has been Openfield’s lack of presence in the South East compared to the past. Haulage has been a battle for several years now and I guess Frontier opens the South East back up which is a big milling wheat area.

I also thoroughly dislike the structure and complexity of the current contract. I grow 2 varieties which I have to compete to grow, then each variety gets split onto “A” & “B” contracts, some of which is on a pool, some on PD and there is no guarantee that they will use the “B” tonnage anyway, if it doesn’t get used by Warburtons then I have a pile of 12.5% wheat that I have to market through Openfield who will be £5/t lower than other merchants because of haulage and no homes for it in the SE.
The seed that I have to buy from Openfield is always the most expensive each year.
I’m not sure how much of this complexity is down to Openfield and how much is down to Warburtons? Time will tell.

 

[Woldgrain Storage]

I think this must be a good thing for those of us who are in storage co-ops with grain marketed by frontier?

Especially if you have a Cleaned Wheat Plant?

 

[Honest john]

It is a real shame, I get on well with Openfield generally and grow Crusoe for Warburtons.
Its not a bad contract, the only down side is you have to put towards 50% of your tonnage in a pool and then they only take the rest at certain times of the year when they have a window which could be months later.
Frontier have shat on farmers regarding importing substandard shite OSR and holding the uk price down?
I'm not sure I want to deal with them.

You don’t have to put 50% in a pool. You can choose to.

 

[ajd132]

[Q

Especially if you have a Cleaned Wheat Plant?

Especially if you have a Cleaned Wheat Plant?

Who knows.
judging by twitter and Facebook people want to now boycott warburtons because it’s going to be importing all American GM wheat!

 

[Honest john]

We’ve been Warburtons growers for as long as I can remember. The trouble in recent years has been Openfield’s lack of presence in the South East compared to the past. Haulage has been a battle for several years now and I guess Frontier opens the South East back up which is a big milling wheat area.

I also thoroughly dislike the structure and complexity of the current contract. I grow 2 varieties which I have to compete to grow, then each variety gets split onto “A” & “B” contracts, some of which is on a pool, some on PD and there is no guarantee that they will use the “B” tonnage anyway, if it doesn’t get used by Warburtons then I have a pile of 12.5% wheat that I have to market through Openfield who will be £5/t lower than other merchants because of haulage and no homes for it in the SE.
The seed that I have to buy from Openfield is always the most expensive each year.
I’m not sure how much of this complexity is down to Openfield and how much is down to Warburtons? Time will tell.

I Agee this contract is a pain with B tonnage sitting in your lap to sell late on a weak market. If the market should be strong then clearly they will take the B tonnage.
Having said all that, it’s the best that’s in the market place.

 

[Honest john]

With grain Marketing a very low or no margin business, more are becoming involved further up the chain.
ie Gleadell Frontier.
It’s the way of the world ATM
I find Openfield a pleasure to deal with, with my Rep up there with the best in the business.

 

[Badshot]

I'm disappointed.
Been growing for some little while now.
Hearing its entirely possible that the south east will be excluded on distance.
Quite a lot of investment in mills further up country, and in particular Scotland is unlikely to be getting Kentish wheat in future.
Shame.
The pool for me was insurance, with it being ringfenced against open-field going under, so my crops were not going to be stolen from me if they went bust.
The same can't be said for any other merchant as far as I'm aware.

Going to have to think hard about the next move.
Got two more growing seasons apparently.


Who's felt they've done well with the bean contract?
Pricing against feed wheat is a right con IMO.

 

[teslacoils]

Now frontier are at c25 percent of the grain marketing in the UK, perhaps it's time the competition commission started to take an interest? Dare I say that if, as farmers, we formed a company to market 25 percent of the UK grain output then they may be more interest taken....

 

[Banana Bar]

I’m not sure everyone predicting the demise of Openfield is going to help keep them in the market as merchants. Of course it’s not going help their already difficult position.
I shall continue to use them albeit in smaller committed amounts. They’ve been an exceptionally good merchant for me over the last few years particularly when marketing GP3 wheat which has consistently beaten CS results without the costs associated .