News that Vivergo, the Hull-based ethanol producer, will close permanently at the end of the month is distressing, but it holds lessons for us all.At roughly 1.1 million tonnes of wheat annually, it was an important customer of UK agriculture and played a vital role in supporting the domestic price of feed wheat. Spot prices in the region fell immediately on the news, closing £5-7/tonne down on the day. The uncomfortable lesson of this sorry situation is, however, that as markets change variety choice becomes the first means of risk management. “At roughly 8% of UK wheat production, Vivergo played a pivotal role in supporting the livelihoods of arable farmers, principally those across the north-east, but also further afield. The impact of its closure will be felt for several years,” says Andrew Newby, KWS UK managing director. Central to how farmer’s recover from this loss of market will be variety choice, says Mr Newby, as what is sown this autumn will largely determine income levels next year when it will likely be sold.He believes the loss of such a big domestic consumer should encourage all those in the grain trade to re-evaluate the variety advice given to farmers.
“The loss…
“The loss…
