Warburtons and its grain supply partner Openfield have agreed to extend their relationship for a further five years thereby giving its farmers the confidence to invest in their businesses.
Openfield head of supply chain Sarah Bell welcomed the deal which will take the contract through to harvest 2021, reflecting Warburtons long-term commitment to the industry.
“Over the past 17 years Warburtons has sourced more than 2 million tonnes of wheat from British farms. This has contributed to over 10 billion bread products. This is an unparalleled level of commitment in the grain supply chain and one which has delivered great value for all parties. We look forward to taking the relationship further,” says Sarah Bell.
A Warburtons contract is unique within grain production as it is the only agreement to offer a minimum price premium over base feed wheat values beyond a single season, a point that is highly appreciated by growers.
“Growing milling wheat to a defined specification takes skill and confidence. By offering a minimum premium guarantee and contracting for five years the grower has the confidence to invest in equipment and storage systems while the variety assessment programme helps to develop and hone the plant material needed to meet quality specification,” says Sarah Bell.
“At a time when the market is exerting great pressure on growers, the value of a long-term contract is a source of great reassurance,” adds Sarah Bell.
The focus on long-term relationships with their farmers enables Warburtons to ensure that long-term sustainability is a priority for its farmers. The key areas of focus are; healthy soil, good water stewardship and supporting biodiversity.
Brett Warburton, executive director, Warburtons, said: “As a family business, we are able to take decisions for the long term, and it is this approach that has been key to maintaining our business success over the last 140 years. We believe that for our business to grow we need to work in partnership, and that means working with our farmers, and partners like Openfield, to ensure we deliver what the business needs – but in the right way.”
