The Best Way to Manage Risk When Marketing Your Oilseed Rape Crop

Posted: 17 May
"Hindsight is a wonderful thing, but foresight is better" - William Blake

It’s Easy to be an Expert.  At least, it is when the market is rising.  Riding a buoyant market gives some farmers the confidence to risk holding on for the peak price before selling their crop. This is a crop marketing route that might work, provided of course they can continuously pay very close attention to the market’s trends and movements in order to sell at the precise, optimum moment.

But when the market is depressed and farmers still have an unsold heap in store, confidence and optimism can disappear quickly and be replaced by anxiety and apprehension. It’s all too easy to forget about the falling market prices and adopt the “bury your head in the sand” approach.

Being “long and wrong” is never a good position, especially when faced with a sinking market.  And with oilseed rape, the market tends to be characterized by its volatility, with frequent and dramatic price fluctuations the norm.

Being caught out by the market is frustrating at best, but there is a safer haven available to farmers that helps protect against market squalls and storms.

United Oilseeds pool marketing aims to deliver members with prices for their crop that actually beat the market’s average price.  Pool marketing may not guarantee getting the peak price, but over the last 14 years, United Oilseeds Pools have delivered a higher than average market price - and one that’s higher than any of our competitors.

Specialists in oilseed rape marketing, the United Oilseeds farmers’ co-operative has become a recognised market influencer, as it manages the largest rapeseed pools in the UK. It benchmarks against fixed price sellers, competitors and daily market prices.

George Topham of Cambridgeshire farmers, GW Topham & Son, is a member of United Oilseeds and says:

“Receiving a higher than average market price for your crop, but without the daily time-consuming inconvenience and worry of monitoring the market yourself, makes pool marketing a shrewd and prudent way to sell your crop. It is a long-proven way to provide shelter from the market’s volatility.”

The graph above shows how the United Oilseeds Long Pool has delivered a price to its members that is higher than the average market price and considerably higher than where the market is now.

Key Pool Benefits for Members:

  • Interim payment 28 days after movement or store allocation
  • 3 pools available: Harvest, Long and Carte Blanche
  • 60 TASCC accredited stores conveniently located around the UK with 200,000 tonnes of storage space
  • Haulage storage cleaning and drying charges are all deducted at final settlement thereby providing a cash flow advantage to members
  • Produce of Area Contracts with no penalties for over or under production
  • No surcharges on cap loads
  • Profit share on turnover
  • Prompt, efficient and friendly haulage
  • Export opportunities from 22 UK ports

If you would like to know more about United Oilseeds Marketing Pools, please speak with your local United Oilseeds Area Manager or call us on 01380 729 200.