February 22, 2013

UK sees rising wheat imports over exports

UK wheat imports have overtaken exports in the first six months of the marketing year as users turned to India for supplies due to a dismal harvest in 2012.

The UK, typically a notable wheat exporter, imported 1.34 million tonnes of the grain in the July-to-December period, up from 460,500 tonnes in the first half of 2011-12.

Imports in December itself more than tripled to 305,584 tonnes, dwarfing exports which fell to 35,130 tonnes, the worst performance for the month in at least 20 years.

The reversal in the UK's trade fortunes reflects a 2012 harvest which came in with the lowest yield in 20 years, and on the key quality measure of bushel weight was the worst on records going back to 1977.

Indeed, millers have been major drivers of the ramp up in wheat imports, ramping up purchases of hard wheat from the likes of Canada and Germany to ensure flour quality.

However, with some UK wheat not fit for fodder without mixing with higher quality supplies, feed merchants have also been forced to look at imports, or to alternative grains, such as corn.

Other origins for wheat in December included the US, of 18,492 tonnes, probably of hard varieties, but with talk of softer wheat on its way next month, to replace the dearth of UK Grade 3 wheats used in making biscuits.

China, India and Israel also shipped small quantities of the grain to the UK, with one tonne of barley turning up from Hong Kong.