Not long ago we were considering the pressures facing Russian grain producers and the potential for a ripple effect across the global market. Now, we have a supply-heavy backdrop due to record or near-record harvests in the US, South America, and the Black Sea region.
A global grain surplus puts pressure on prices, not great news given the UK’s own production has faced challenges with a wet period impacting wheat harvest. With global demand met by a bountiful supply, the opportunities for UK grain exports become more limited. Rather than simply taking advantage of cheap imports, the UK’s cereals processing industry seems to be prioritising a long-term strategy of building a more resilient and sustainable supply chain – a response to the risks of over-reliance on volatile international markets?
We are also seeing a growing interest in domestic, traceable ingredients, a trend driven by consumer demand for locally sourced products. Could this shift present new opportunities for processors? As the industry looks to new domestic crops, such as fava beans and lupins, to replace imported soy, there’s a need for specialised equipment to handle these new ingredients.
But is demand at sufficient scale yet to drive a significant investment in new plants? The ethical food market is growing, but much of the demand for pulses is still for animal feed or for export. However, we read about promising signs from major retailers and food manufacturers who are actively trialing and launching new products containing fava beans. This suggests a growing confidence these new supply chains can be scaled to meet a developing consumer interest. The key, it seems, is for the industry to work together to bridge the gap between farm and consumer plate.
No matter the global market conditions, the core business of UK cereal processing companies remains the same: to produce high-quality, safe, and efficient output. We, as an equipment supplier, are here to provide the versatility, flexibility, and adaptability in equipment, support, and expertise that helps keep plants running smoothly,
Turner Process Equipment remains committed to supporting our clients with the high-quality equipment, support, and expertise that helps keep plants running smoothly and efficiently and adapt to new challenges.