October 2nd 2009

SOFT WHEATS PROVIDE MARKETING OPTIONS

Despite an overall decline in the planted area of Group 3 soft wheats in the past few years, growers are being advised consider carefully their choice of winter wheat cropping for the future, or potentially run the risk of losing a market that is unique to UK producers. With prices currently on the floor, along with many million tonnes of feed wheat, now could be the time to reconsider marketing options and go for varieties with premium potential, according to leading plant breeder Nickerson.
 

Lee Robinson, Nickerson’s Director of Marketing – Arable Seeds, comments: “The UK has always been good at producing soft wheats, but the sector has declined as older Group 3 varieties have become less competitive. Without strong candidates to replace them, barn-filling Group 4 varieties have become increasingly attractive in recent years in terms of their high yields and better overall commodity prices.”

 

Questioning the trend away from soft wheats when the market is so specific to what can only be produced here in the UK, Mr Robinson emphasises: “The Spanish and Italians, for example, depend on ‘UKS’ wheat for their biscuit production – they can’t get it from anywhere else in Europe. Whilst it is hard to compete with milling wheat produced by the French or Germans, we can produce very good soft wheats.”


 

Suggesting that there will be newer varieties which will come through to Group 3 to bolster long-term stalwarts such as Claire, a variety which Continental millers are keen to see continue in the UK, he adds: “Invicta, currently a Candidate variety, is one that we are hoping will make the Group when the Recommended List is announced this autumn and that will be a positive note for the export market. However, existing Group 4 varieties such as Alchemy, Viscount and Cassius fit the soft wheat category.”

 

David Doyle, Head of Wheat Desk at Openfield, states: “UK soft wheat characteristics give an added value to UK wheat, providing flexibility in the market for UK growers. Continental millers find it very usable as a straight biscuit flour, or blend, and because it is a relatively cheap source of milling wheat the overall value of their blend can be less expensive with its use. The extensibility of the dough makes the UK Group 3 wheats very good for blending in with other origins of wheats that importers might be bringing in.

 

“Potentially, growing a soft wheat variety offers producers something else to sell other than just feed wheat. “If you look after it as you would milling wheat then you’re more likely to get a premium. Right now, growers need to extract every pound they can and this is one way to do it.

 

“What’s happening now in the market is a snapshot of what can happen if the UK is not competitive in the feed export market. The Danes have been very active in the market recently with low-priced feed wheat and, if that’s all you grow then that’s the only market you can compete in. It’s a case of looking at more than just the feed wheat price matrix.”

 

Mark Smith, Grains Director Saxon Agriculture agrees that growers should grow soft wheat varieties if they want to access a wider range of markets. He states: “There’s been an explosion in Group 4 varieties in recent years, where the only distinguishing characteristic is yield. But any variety with a Group 3 classification is acceptable to all soft wheat biscuit buyers, whether in the domestic market, which is currently very stable, or export markets. Group 4 Alchemy will command a premium from the domestic market and premium contracts are available for all Group 3 varieties for harvest 2010.

 

“Distillers also prefer soft varieties, so while the overall planted area for soft wheats is still in decline, it remains a characteristic wheat which is easy to market.”




Limagrain UK Ltd, Rothwell, Market Rasen, Lincolnshire, LN7 6DT    Tel: 01472 371471