Oilseed contracts maximise returns
Farmers who are Members of the AtlasFram Group, a UK purchasing and grain marketing co-operative, can now benefit from two new oilseed rape marketing contracts as part of the Group’s alliance with ADM Direct.
The first offers AtlasFram Members an additional £15 per tonne premium over and above normal quality premiums for standard double-zero oilseed rape, for the next five years.
It is available to Members whose farms are certified by Linking Environment And Farming (LEAF), one of the leading organisations promoting sustainable food and farming.
The launch of the new contract is particularly well timed as LEAF has recently started working with ADM Direct on a new supply chain initiative, while AtlasFram Group has joined LEAF and is encouraging its Members to gain LEAF Marque Certification.
Explaining the background to the new contract, Barry Howard of ADM Direct said "ADM is one of the main suppliers of rape oil in the UK and one of our large customers is looking to source their rapeseed oil from sustainable sources.
The customer has identified that the standard ’Red Tractor’ label does not provide all of the assurances it needs to meet this objective, but has agreed to accept products produced on farms which are LEAF-approved under the LEAF Marque scheme.
Although LEAF Marque has traditionally been associated with vegetable production its influence is now extending to the combinable crop sector.
We believe that the five-year supply contract which ADM Direct has negotiated with the customer will provide AtlasFram Members with the long-term reassurance they need to fulfil an exciting new opportunity."
Ashley Gilman, Group Business Manager for AtlasFram Group, adds "LEAF Marque will provide our Members with a genuine commercial advantage in the demanding premium and assured food markets. AtlasFram is a Corporate Member of LEAF and our Members are able to join LEAF at a discounted rate. Suffolk FWAG, a registered LEAF advisor which joined AtlasFram in January, will be able to help our Members to achieve LEAF Marque status."
The second new contract offers AtlasFram Members a premium of up to £35 per tonne for High Oleic, Low Linolenic (HOLL) oilseed rape, in addition to standard oilseed rape quality bonuses.
Bred specifically to meet the requirements of the bulk frying industry, HOLL oilseed rape produces oil which enables food manufacturers to change from palm oil and reduce saturated fat levels in fried or processed foods, resulting in ’healthier’ products.
Until recently, yields from HOLL varieties have fallen short of those produced by conventional double-zero varieties, which offset some of the quality premium and reduced their attractiveness to growers.
This changed with the recent introduction of two new Vistive hybrid varieties, V275OL and V280OL. These provide similar yield performance to conventional hybrids but their valuable high oleic, low linolenic oil profile means that they generate a very high gross output.
V275OL was the first commercial Vistive hybrid oilseed rape to bring yield performance in line with other winter oilseed rape varieties. Characterised by its high oil content, this mid-early maturing winter variety is suitable for all regions of the UK and all situations.
V280OL, a mid-early maturing variety, is slightly lower-yielding but has a very high (46.2%) oil content. Its Linolenic oil content is significantly lower than the threshold required under contract specifications, making it very attractive to end users.
Having more than doubled its Vistive contract requirements for the coming season ADM Direct is looking to secure a significant additional area of HOLL oilseed rape from AtlasFram Members, who will be able to gain premiums from £25 per tonne over and above standard OSR quality bonuses for harvest delivery and up to £35 per tonne for delivery from September onwards.
