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Warburtons wheat contract extends to 2016

June 11th, 2010

Openfield and Warburtons have announced a long-term extension to their UK milling wheat contract that will take the supply agreement to its 18th year - thereby maintaining Warburtons as the most significant long-term supporter of British wheat production.

The contract, now in its twelfth year, has already been worth £172 million to British farming and is expected to rise to £312 million before the end of 2016.

Detailing the terms of the renewed contract, Warburtons Group Purchasing Director, Bob Beard, said that he was proud to be backing British farming: `Top quality milling wheat and traceability are at the heart of both our bread making process and British Farming, so we are delighted to announce this contract renewal news. We produce 15 million units per week, which can be anything from crumpets and rolls to large loaves all of which depend on the excellent wheat that Openfield`s members grow for us.` He added: `Openfield members, who contract the wheat, have consistently risen to the challenge of producing the increased quantities that Warburtons have required, whilst continuing to improve the exacting Warburtons quality standards.`

Openfield`s Group Commercial Director, Graham Lacey, said that he was delighted to have agreed an extension of the contract that had already seen over 1 million tonnes of contracted wheat delivered for Warburtons flour.

`It is this type of long-term commitment that sets our relationship with Warburtons apart. Many farmers have been committed to producing Warburtons` wheat since the contract began; this has helped them to secure some exceptional returns from their wheat. When we started working together in the late 1990s it would have been hard to believe that ten years on we`d have contracted so many tonnes of wheat for Warburtons`.

He added: `This contract underlines our commitment to our members and their part in helping the Warburtons loaf to be of the highest quality and the market-leading brand on the supermarket shelf. The contract is, however, about far more than just volume as we`ve worked together to ensure that not only fair prices have been paid to growers each year but also that as much as possible of the contracted wheat can be used by Warburtons even during more difficult harvests. The real test is how much our growers receive for their grain each year - not just a headline price.`

Mr Lacey continued, `We`re now heading towards our twentieth year of enjoying a sole supply agreement together and that is remarkable in our industry. We continue to strengthen our bonds at many levels and have consistently found new ways of adding value and innovation to this contract. For example, we have recently introduced a Farmer`s Forum, giving the contract growers a chance to get closer to Warburtons to explore further marketing, technical, commercial and other opportunities.`

Growers interested in supplying Warburtons as part of the new contract should contact their Openfield farm business manager.

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