Organic Arable have been asked by one of it's milling customers to propose some ideas as to how a pricing structure for organic milling wheat could be developed. Can we develop a scheme that could give producers some understanding of what they'll be paid for the crop and evaluate whether a milling crop or feed wheat crop is the best option for them. At the same time allowing the miller and baker understand the price they will pay for grain and a mechanism which allows them to reward the best quality.
The reason our feed grain project with BQP has been successful is because the producers involved have been involved in developing the project and so have had some control over it. Based upon this experience I want to ask you to give us some feedback as to how an organic milling wheat pricing structure might work.
Some assumptions that you may like to mull over when thinking up your ideas.
- Spring wheat generally produces a higher protein sample than winter wheat.
- Spring wheat yield approximately 0.75t /Ha lower than winter wheat
- Average organic feed wheat price 1.9x conventional wheat price
Conventional feed wheat price x 2 for a 10% protein organic milling wheat plus £20 for a 11% and £40 for a 12%. That seems fairly simple. Based upon a Liffe feed wheat for Nov 12 that would pay about £240 ex farm for Nov 12 delivery for a10% wheat plus premiums for stronger protein.
Please let us have your thoughts on the above or propose an alternative. We need to engage in a discussion with the millers so the more they know about you thinking the better. Thanks
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