In England, Frontier Agriculture announced the details of their farmers contracts to supply wheat for the Vivergo Bioethanol plant in Humberside. Called the Humber Gold Club, famers must supply a minimum of 120 tonnes of wheat, for which farmers are promised competitive prices, with as much as 17% moisture, while penalties for missing the 15% standard will be limited to less than the cost for farmers to dry the grain themselves to meet the standard.
“We want to make this the most attractive home in the country for wheat,” said Frontier’s grain procurement manager Andrew Flux. “The pricing level in the area is going to go up and we are very keen to buy wheat every day of the year.” This is all centered on the Vivergo plant, which will consume 1.1 million tonnes wheat per year.
As farmers to commit to larger deliveries, there will be larger enticements. This club is similar to the Manchester Gold Club, which was established to supply the Cargill starch facility at Trafford Park.
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