The proposed merger of Grainmasters and Centaur Grain is good for farmers and will help them compete more effectively on a global level, the NFU said today.
The two co-operatives have announced they will join forces to form a new farmer-controlled business called Openfield. The new business"e;s grain movements will be handled by logistics specialists DHL.
Ian Backhouse, NFU combinable crops board chairman, said: "With successive reforms of the CAP arable farmers and their customers are being exposed to increased international competition. This move emphasises the changes agriculture is going through. Having a national grain supplier of this scale run by farmers will help them compete in an increasingly global marketplace and will bring farmer-controlled business on to a more equal footing with the commercial businesses operating in the UK.
"We look forward to continuing our good working relationship with the existing businesses as they work towards this merger."