Pricing Organic Milling Wheat

How should Organic Milling Wheat be Priced?


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

Here's an idea.


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

We're giving away money!

At the Organic Arable Board meeting on Tuesday it was decided that we would give money away!

We work with some great organic producers who have supported our philosophy of being a business run by farmers for farmers and we wanted to thank them for their loyalty and prove that being loyal and collaborative is beneficial.

To that end we are paying a tonnage related bonus to our members.  We have set a minimum of £50 for those who perhaps only market a few tonnes with some of the bigger producers getting in excess of £900.

Our business is not about generating profit for the company and its shareholders but is about supporting our farmer members.  We're proud of our business, the philosophy we work to and the way in which we are different to other grain merchants.

If you'd like to know more about how we do business or get involved with a business that is proud to do things differently and better - we'd love to hear from you.  Call us on 08456 521 706 or email enquiries@organicarable.co.uk

Visit www.organicarable.co.uk to find out more.

Cows eat weeds!

Nothing to do with grain production but an interesting example of lateral thinking.

A project in the US has been teaching cattle to eat weeds.  Those of you with mixed systems may be like to see how they did it.  Click here to link to the video