Future Capital Partners - progressive & unique
06 October 2009

Response of the NFU to the article in The Times yesterday

PressLetter sent to The Times by the NFU (National Farmers' Union) , following an inaccurate article of the newspaper on biofuels:

Sir

Robin Pagnamenta's article (Hunger for biofuels will gobble up wheat surplus, The Times, October 5) must be put into context.

Despite this year's wheat production being lower than in 2008, UK stocks are at double the levels of the five-year average - five million tonnes against the five-year average of 2.5mt. In fact, in the last ten years we have produced near 16 million tonnes four times and 12 million tonnes only once.

The long term prospects are positive with UK farmers able to produce more if the correct market and policy signals are in place. The 2009 harvest reflected falling cereal markets and higher crop input costs affecting production directly. 

Biofuels are an efficient use of land producing both an important low carbon fuel to replace fossil fuels and also a high protein co-product that can help reduce our dependence on imported protein for animal feeds.

NFU President Peter Kendall


 

Furthermore:

- Given the large carryover of stocks, UK wheat prices are likely to remain low. In addition, bumper harvests in the rest of Europe are likely to ensure supply (and low prices) in the near future.

 - The UK always imports wheat, including for bread, as this is part of normal trade.

-  The wheat used in the wheat-to-bioethanol plant will be of the lowest grade and will not compete with high grade milling wheat, as the one used for bread.

-  UK wheat is now the cheapest in the world – giving us a potential competitive advantage to produce biofuels from this feed stock.