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Storage deal opens new doors for OSR

Date Added: 06/07/2010

Oilseed rape growers in Northumberland and the Scottish Borders will be able to enjoy improved access to the state-of-the-art crop processing and storage facilities at Coastal Grains Ltd in Belford after the company signed a long term crop storage deal with specialised oilseed rape marketing company, United Oilseeds.

The deal, which has seen United Oilseeds successfully negotiate terms for the purchase of 9,000 tonnes of crop storage space at the Belford facility, will make additional storage space available for the region's oilseed rape harvest. In addition, the site's modern grain processing facilities will enable farmers to achieve higher premiums from domestic and overseas markets by producing crops that meet the strict contractual specifications of specific customers. Growers will also be able to decide when to sell their crops instead of having to accept the market rate at harvest.

The site at Belford is currently in the second year of a three year investment plan to significantly increase drying and grain throughput capacity at the site. A total of £2.5million is being spent to increase daily tonnage intake capacity from 3,000 tonnes/day to 5,500 tonnes/day.

The partnership means that members of United Oilseeds will have access to another crop processing and storage facility in the North East.

"United Oilseeds operates through a network of more than 50 stores nationwide," explains Chris Baldwin, Managing Director for United Oilseeds. "This development is part of our long term investment strategy to improve returns to our farmer members. Creating a close working partnership with Coastal Grains Ltd will bring considerable benefits to both companies. The investment gives United Oilseeds the ability to offer improved crop handling flexibility to its members in the region, who will also be able to take advantage of the facility's exceptionally competitive drying and storage rates.

"The investment also means that United Oilseeds will be able to take advantage of a number of new market opportunities in the region. This in turn will help Coastal Grains Ltd to strengthen its position as the largest co-operative grain facility in Northumberland."

Terence Pardoe, Chief Executive of Coastal Grains Ltd, said: "Coastal Grains Ltd is the UK's second largest grain co-operative store in the UK and offers first class crop drying and storage facilities. We pride ourselves on being a progressive company, and the ongoing investment at the Belford site underpins our position at the forefront of the grain processing industry. It also improves the level of service that our members benefit from.

"We look forward to working with United Oilseeds and to adding value to its members throughout the region by offering access to our crop drying equipment and storage facilities and allowing individual farm businesses to benefit from our economies of scale."

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