Euro cash needed for new grain store (From Western Telegraph)

Euro cash needed for new grain store

Pembrokeshires arable farmers are targeting European cash to reduce the cost burden of a £1.3 million centralised grain store.

The facility, to be developed in a former aircraft hangar at Pembroke Port, will be the first of its kind in Wales, and will be based in a county producing 40% of the countrys cereal crop.

A business plan setting out a vision for this dockside drying and storage unit was presented last week to 50 farmers by Aubourn Farming and the Pembrokeshire Business Initiative (PBI).

The store will give producers the opportunity to sell when mills are operating below capacity and will be a key to accessing and developing new markets. Farmers who listened to the presentation of the business plan at the Cleddau Bridge Hotel, Pembroke Dock, last week, were keen for the project to move forward to the next stage - securing a 40% processing and marketing grant from Europe.

There is widespread support from farmers, but also reservations about the cost. Milford Haven Port Authority is prepared to meet the capital cost of the building, but the £600,000 cost of convening the interior will come from farmer shareholders and grants.

Steve Mackintosh, who prepared the business plan for Aubourn Farming, said farmers had an on-off opportunity to access an Objective One grant. Without it, the project would not be viable, he admitted.

Its not necessarily going to achieve a positive rate of return on capital, but it will give opportunities to farmers to restructure their businesses and reduce costs, making them more viable, said Mr Mackintosh.

It will also introduce flexibility by allowing producers to store grain until the price is right to sell again. They are currently missing that opportunity. Producer shareholders could sell or increase their stake in the co-operative as their needs change.

According to the business plan, Pembrokeshire is under-producing and there is a huge potential to target new markets, including Ireland. Meurig Raymond, chairman of the projects working group, was pleased with the way the plan had been received.

The mood of the meeting was positive, there was a fair bit of enthusiasm to move onto the next stage, he said.

Up to l5,000 tonnes of grain could be handled annually in a facility with the capacity to store up to 6,000 tonnes at any one time.

It could increase profits for producers whose grain is currently averaging £60 a tonne - half the return they would have achieved three years ago.