Graindex, the UK’s only independent online trading platform for the arable sector, has captured 60% (by volume) of the UK’s traded grain and oilseed market following Nidera’s agreement this week to join the growing ranks of merchants who are now committed to using the site to source and buy combinable crops.
Nidera, one the UK’s leading merchants now joins Openfield, Gleadell and Glencore in agreeing to trade through Graindex. This move gives farmers access to four of the big five merchants plus a large number of regional merchants including WellGrain, Robin Appel, Bodle Bros, Charles Jackson & Co, Humber Grain, Robert Kerr Agriculture and Witney Grain.
Graindex’s commercial director Andrew Huxham says in the first four weeks alone of the site’s operation, £750,000 worth of listings have been added; 45% of these have resulted in a sale in what remains a very difficult market.
“The uptake has gone way beyond our expectations,” he says. “We think this is because there’s no risk and no downside, so vendors are happy to put lots on there to try out the market.
“Anyone who registers as a seller also gets to see Graindex’s ex-farm prices which appear after each sale, giving invaluable live feedback,” he says. “We want to provide as much market information as possible so vendors can make informed decisions on when to sell."
Andy Hoyles, head of farm business at Openfield, says Graindex is a great opportunity to get better data and understand what’s going on in the market. “Online trading in some form or another is inevitable and for us Graindex ticks all the boxes,” he says.
Robin Hobson of Laurence Gould Partnership, who advises cooperative boards in the grain and oilseed sectors, is equally positive. “It's a unique source of independent and objective market information which allows farmers to make sure they are getting a fair price for what they produce.”
The system, which is a first for the UK market, is designed to simplify and speed up the transaction process for both buyers and sellers. Twice daily trading periods enables sellers to upload details of the crop they’re marketing, including information about the specification, the movement date and location. These stock profiles are then available for viewing online by merchants who can make bids through the site.
At the end of the trading period sellers make the choice about who they sell to, based on a range of factors – including price – just as they would through conventional, ‘over-the-phone’ trading. The system is currently free to both buyers and sellers.
