May 17, 2006

Plant from Cargill's subsidiary to switch to UK wheat

Frontier grain, a subsidiary of Cargill, is switching to UK wheat for refining into alcohol and starches.

The Cerestar plant, which is expected to process about 750,000 tonnes annually, would be based at Trafford Park, Manchester.

The plant currently uses maize imported from France for processing.

The switch to domestically produced wheat has meant a further investment in a new mill and processing facility.

John Duffy of Frontier, said the development represents the biggest investment of its kind in the UK wheat crop.

The plant would switch to using only UK grown wheat for processing starch into refined sugars from March/April next year. The company hopes to start negotiations with producers in the coming months and may set up producer clubs, he added.

Chairman of the NFU's regional combinable crops board Richard Reeves said the new plant could give much needed stability to the region's producers.

Wheat prices have been falling in the region and if it becomes unprofitable, growers would simply abandon the crop, Reeves said. However, the appearance of the new plant would stave off that day to some extent.

The Cerestar plant is expected to create extra demand for the 2.5 million-tonne wheat currently exported.