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Cefetra invests £7m-plus in grain storage but Errol granaries sale still unconcluded

CAPACITY BOOST: Cefetra says investing in stores including the Ormiston one demonstrates its long-term commitment.

Two of the grain stores that were on the market following the collapse of the Scottish grain merchant, Alexander Inglis & Son Ltd have been sold for in excess of£7 million.

Meanwhile, despite widespread local speculation over the purchaser of the 23,000 tonnes of storage at the Errol granaries, the administrators insist the prospective buyer’s name will remain undisclosed for now.

A spokesman for the administrators said: “A sale contract was concluded with the purchaser for the Errol site on September 16 2021, and the sale will conclude when the stock position is finalised, a process that will likely take a couple of months or so.”

The Errol granaries sale has not yet been concluded.

The grain and animal feed trader Cefetra, which has an annual turnover of more than £1bn, is the new owner of the grain stores at Ormiston in East Lothian and Charlesfield in Melrose.Ormiston has a capacity of around 80,000 tonnes, while Charlesfield can hold in the region of 60,000 tonnes.

Managing director Andrew Mackay said: “By making such a significant investment we have taken the next step in further strengthening our grain origination business.

“It also demonstrates our long-term commitment to supporting both the farming community and our established customers across Scotland and northern England.

“These grain handling, processing and storage facilities, with drying, cleaning and grain analysis operations, give us the infrastructure required to operate in key grain production areas of Scotland.

Cefetra now  owns over one million tonnes of storage capacity in the UK and Ireland.

“They allow us to work with and support farmers, while also enabling us to supply quality grains, oilseeds and pulses to key customers in Scotland and northern England.”

The acquisition means Cefetra now owns over one million tonnes of storage capacity across 40 sites in the UK and Ireland. It dispatches around 600 lorry loads every day and delivers between 85,000 – 90,000 tonnes of raw materials to the farming industry every week.

Mr Mackay said: “With our efficient supply chains and logistics, alongside our strategically selected storage facilities, and an excellent network of farmer growers and suppliers, we are ideally positioned to meet the requirements of our customers.”

He added the company was well aware of the challenges that farmers face in a volatile marketplace.

“But by working together, we can support and help manage their market strategies to help generate strong returns. As their supply chain manager, we provide a secure connection between the farmers’ business and the end consumer.”