April 1, 2009: Grain trade offers ‘exciting’ opportunities in 2009 but industry must not forget farmer focus warns Fengrain chairman

As the grain trade gears up for another potentially tumultuous year a leading figure in the industry believes 2009 will offer a harvest full of opportunity.
Speaking on the first anniversary of his appointment as chairman of Cambridgeshire-based Fengrain, Paul Wilkinson is convinced the industry is moving in the right direction with a gradually evolving business model.
Despite having experienced one of the most difficult harvests on record and the spectre of volatile global food prices, Mr Wilkinson remains upbeat on the future.
“It’s certainly an exciting time to be in the grain trade right now,” said Mr Wilkinson.
“Obviously there will always be a market but it is how businesses work around that and evolve which is the really interesting bit.”
But, with the current trend towards large-scale operations, Mr Wilkinson also sounds a cautionary note.
“It is vital we don’t lose sight of our members and all farmers we work with,” he said.
“Added scale gives you advantages but it can also cause potential problems if you lose the personal touch and your focus.
“Farmers are individuals and must be treated as such.
“A large farm enterprise needs a different approach to a small family run operation. There can’t just be a blanket approach. At the moment there seems to be something of a herd effect with the attitude being that it has to be big to work but I would disagree with that.”
Mr Wilkinson who has spent his whole career in the food and drink industry - most recently as director of Aryzta AG, a major international food group with sales of €2.5billion, is also well aware of the inexorable trend of rising global food prices.
“Unfortunately there’s no getting round it, prices are going to continue to rise,” he said.
“We’ve got less land and less water but ever more mouths to feed. Add the challenges of climate change as well as competing demand for biofuels and it’s not hard to see where we’re heading. The key question now is how can we increase supply, which then leads us on to other issues such as GM crops.”

Stable future

Back at Fengrain’s 100,000 tonne store in Wimblington, however, the future looks far more stable with the business looking forward to the 2009 harvest with renewed optimism. The grain buying team has been strengthened and the business is re-engaging with farmers across the Eastern Counties.
“We are trying to operate on the principal of a virtuous circle,” explains Mr Wilkinson.
“Last year we had a surplus of UK£50,000 which we returned to our farmers based on the amount of tonnage supplied. We want to share our success and while we’re not talking huge amounts here it hopefully sends out the right message.
“When I first joined the business I felt that people weren’t being talked to properly. We want to extend the special relationship Fengrain currently shares with some members to all of our growers.”
Mr Wilkinson also believes last year’s difficult harvest helped to build Fengrain’s reputation thanks to the way in which it dealt with huge quantities of wet grain day and night. The store remained open as planned throughout the whole period and members worked closely with the team to manage the massive intake.
Fengrain is committed to adding value along every step of the grain chain, from farm store right through to processor. Whether it is improving central storage facilities, supporting quality assurance or enhancing logistics, Fengrain aims to provide the very best quality and service for its customers together with reaping the benefits of improved efficiencies for all stakeholders.
“Right now it’s looking good for Fengrain as a business moving forward,” said Mr Wilkinson.
“We are right at the heart of where the action is. Our local knowledge and personal service allow us to offer a unique service to our farmers.”

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