Biscuit Wheats Offer High Profits

Based on predicted prices for Nov 2008, selecting a Group 3 variety over an out-and-out feed wheat could improve farm incomes by £100/ha, calculates CPB Twyford’s Andrew Newby.

“With trade experts predicting Group 3 premiums of around £15/t over feed wheat next year, there really is a nice dollop of icing on what is already a pretty impressive £130/t baseline cake,” he says.

According to Mr Newby, leading Group 3 varieties such as Robigus are only 5% behind the highest yielding feed varieties such as Oakley.

“Based on this performance, you only need a £6.50/t premium over feed to make up for the difference in yield,” he says.

While the improved profit potential is pretty clear, Mr Newby is concerned that farmers are not seeing the full picture but have been blinded by the base price and are failing to look beyond it.

“Early trade reports based on seed sales suggest that the potential market share of Group 3 wheats next year could be as low as 15%,” he says.

“That is almost half what it was last year and far behind the 50% market share these wheats had just five years ago.

“The demand for biscuit wheat remains the same and even this year it is fetching a £10/t premium over feed. Indeed as a result of bio-ethanol and our growing reputation as key suppliers to the EU of the type of wheat, it could even strengthen,” argues Mr Newby.

“Harvest reports and HGCA RL data confirm that Robigus has had a good year and growers should not ignore the potential of this variety as the Group 3 mainstay alongside Claire, Consort and Zebedee when deciding what to plant this autumn,” he says.