Farming News - Food fashions: The benefits of growing niche crops

Food fashions: The benefits of growing niche crops


‘Accumulated pressure on current commodity markets has led to open minds and potential for change, when considering alternative cropping’ says James Simkins, Farming Consultant at Strutt and Parker’ Chelmsford office.

He continues; “Food fashion is a ‘trend’ in itself, heavily influenced by media exposure and not to be overlooked.  Recent trends can present opportunities to growers, adding financial value when introduced as a possible substitute to ‘conventional’ Spring crops.

“Niche crops are considered to be sought after produce, most commonly of high value as a result of high demand driven by ‘luxury’ food outlets. The majority of niche crops available provide Spring cropping alternatives to those that fall in amongst existing rotations, providing a range of advantages and disadvantages.

“The timely nature of such opportunity is made an even more attractive prospect, given the current weak commodity markets of headline cereals. Furthermore, with healthy gross margins achievable, timing allows for extended focus on cultural control of key grass weeds. One would argue a very positive initiative at first glance and with reference to the breakdown below, financial review would too complement this position.”

Below is a league table of four crops which are currently commanding a much higher sale price than Spring Barley, for which the gross margin is currently between £500-575/ha.

 

CROPS

SPRING LINSEED

NAKED OATS

BORAGE

QUINOA

Crops                    

Spring Linseed

     Naked Oats

      Borage                 

    Quinoa

Variable Input Costs

£200 /ha

£306 /ha

£320 /ha

£351 /ha

Average Yield

2.3 t/ha

4.5 t/ha

380 kg/ha (0.38 t/ha)

1.5 t/ha

Grain Price

£375 /t

£200 /t

£3.10 /kg (£3,100 /t)

£1,000 /t

Gross Margin

£662.40 /ha

£594 /t (£125 /ha straw)

£858 /ha

£1,149 /ha


Any farmer considering following food fashion should take the following points into account:-

  • Trends do tend to come and go and therefore substitute crops commonly offer only short-term benefit to a business
  • Niche crops provide a feasible alternative when Spring seed is in short supply, with low inputs and attractive margins
  • Agronomic concerns are present amongst niche crops, however clarity is becoming rapidly clearer given the demand
  • Rising demand for all niche crops previously mentioned see fixed priced contracts (+ premiums) achievable today
  • Current food fashion options offer further benefits in key grass weed control through necessary cultural practice


James Simkins concludes; “Cropping has become an integral part of farm management over recent years, more so now than ever before and the concept of following niche trends to maximise financial benefit within a business, certainly offers food for thought.”