Openfield and AberdeenGrain Storage Limited (AGSL) announce that following a review of the existinglong term arrangements between the two businesses in relation to the marketingof grain and the management of storage activities at Whiterashes, that Openfieldwill cease to act on behalf of AGSL at the conclusion of the current harvest.
AGSL will repay all loansoutstanding and repurchase the 9,000t of storage rights owned by Openfieldprior to 30 June 2015. The sums involved remain confidential between theparties.
JamesDallas, CEO of Openfield, has commented asfollows:
After almost 10 years ofunprecedented growth and development of the store with the AGSL members, takingthe store from a capacity of 29,000t to todays almost 70,000t we are delightedto have been able to assist Aberdeenshire farmers working together to build asuccessful storage operation. We are disappointed that negotiationsto continue the relationship proved unsuccessful but our strategic objectivesremain unchanged.
IanCruickshank, Chairman of AGSL, has commented asfollows:
We thank Openfield fortheir significant contribution and financial support over the past 10 yearsand, as a Board, we are considering our grain marketing and grain storageoptions and will make further announcements in due course. Given the sizeof the business today, our requirements are different to what they were 10years ago.
Openfieldand Bairds Malt announce new supply agreement for Angus Cereals members
Openfield, the grainmarketing agent for Angus Cereals, has recently agreed an enduring supplyagreement with Bairds Malt, the largest maltster in Scotland. The agreement coversmuch of the malting barley stored at the Angus Cereals site at Montrose.
Working directly withkey consumers such as Bairds Malt is very much at the heart of Openfieldsmarketing activity, said Openfield Group Commercial Director Graham Lacey.
We are truly delightedthat the superb facilities that the Angus Cereals members have built atMontrose can now be used to help manage the supply of malting barley requiredby Bairds Malt at Arbroath.
The new contract providesfor a close working relationship between the two organisations, includingensuring that members grow the varieties most needed by Bairds Malt and thatthey are processed and segregated accordingly to maximise the amount of grainthat can ultimately be delivered.
When we decided to buildour store we knew that as a new facility in the area it would take time to findour place in the market, said Alex Sanger, Chairman of Angus Cereals.
Having worked closelywith Bairds and Openfield this harvest we are delighted that the supply agreementcements our ongoing commitment to each other, he added.
Mr Sanger said the agreementwas evidence that the investments made by Angus Cereals members was enabling itto build closer relationships with end-user consumers.
There are a number ofkey reasons why Angus Cereals is making progress, he said.
Our collection serviceis so much faster than the industry norm meaning that we create more chance ofhelping our members to secure their harvest quality in difficult seasons and itwill be rare for us to reject deliveries as we will always try our best toallocate loads to a specific market sector whatever the circumstances.
The Angus Cereals storealso provides access to export and import opportunities that can providepremium outlets for members grains and opportunity to service consumercustomers.
Bairds Malt, CommercialDirector, Eddie Douglas welcomed agreement on a collaborative approach tosupply chain partnership.
Wehave been delighted to be party to this agreement and to work with Openfieldand the group of farmers who have invested in Angus Cereals. As one of thelargest and most modern malting plants in Scotland, it is our strategy tomaximise our collection of local barley from the high quality growers in theregion which helps to retain the supply chain value within the local communityof our site. Alongside our commitment to our existing growers, the Montrosestore adds significantly to this strategy.