The Dalmark Group will no longer participate in grain trading due to the "structure of the market place" making its involvement in grain "no longer realistic".
In a statement, the Cambridgeshire-based company said that the current structure of the UK grain industry "no longer allows" for a small, regional merchant to be "profitable".
The group shareholders have thus taken the decision to cease grain trading.
The group’s grain function, Dalmark Grain, was established in 1976 and has served local farmers for many years.
The shareholders have agreed in principle that Cefetra Limited will take on the stock and forward book – an agreement that is expected to be finalised and executed during February.
The business has no liquidity or solvency issues and is fully cross-guaranteed by J.E & V.M Dalton Limited, a business that has net assets in excess of £7 million.
'A sad day'
Dalmark said all creditors will be paid "on time and in full". Dalton Seeds will continue to trade as normal.
Managing Director of J.E & V.M Dalton Limited, Peter Fox, commented: “Given that our grain business has been in existence for over 40 years, naturally this is a sad day.
“We are fully committed to UK agriculture and have done everything we can to avoid this day, but given the structure of the market place, have had to finally accept that our involvement in grain is no longer realistic.
“I am pleased that we have come to this agreement with Cefetra over our contractual position, and particularly pleased that they have offered a job interview with each and every member of Dalmark Grain staff affected.”
