Weakness in the Sterling since the start of 2016 has supported a boom in cereals exports, says the Agriculture and Horticulture Development Board (AHDB).

UK grains have been amongst the most competitively priced in the world this season, generating strong demand from both inside the EU and further afield.

Season-to-date (July – April) barley exports are 35 per cent ahead of the same point last year at 1.76Mt. Forecasts suggest the pace is set to continue with exports hitting 1.9Mt by the end of the season – a 19 year high.

For wheat, season-to-date exports are nearly 30 per cent ahead of the same point in 2014/15 at 2.23Mt, a level not reached since 2011/12.

Dr Martin Grantley-Smith, AHDB Strategy Director for Cereals & Oilseeds, said: “We are gathering information on destinations for UK cereals and where we see newcomers to the market or changes in demand, we will be following up to secure trade on a longer-term basis.

“Although currency is always a driving factor in the global marketplace, we have excellent messages about the quality and traceability of cereals grown in the UK which stand us in good stead to develop strategic relationships with overseas buyers who are less familiar with our products.”

Significantly increased requirements year-on-year have been seen in the traditional EU exports markets of France, Spain, Portugal and the Netherlands on the back of the pound slipping in value against the euro, making UK grain more competitive.

Dr Grantley-Smith added: “We are seeing unprecedented levels of exports at the moment, driven by stock carry over, competitive pricing and the weakened currency. While we’d usually be expecting exports to dry up by this time of year as old crop runs out, we envisage that exports will remain strong so long as UK grain remains competitively priced at an EU and global level.

“Even depressed markets are underpinned by exports and the strong pace of grain leaving the UK provides some bolster for a domestic market dominated by oversupply.”

Ongoing investment in port capacity at the Port of Tilbury and Peel Ports has also seen additional shipments leaving UK shores. Frontier recently announced a 55,000t shipment of UK wheat had left Tilbury on a bulk vessel bound for Indonesia. Meanwhile, Glencore Grain saw the first ever shipment from Peel Ports’ new grain loading facility at Sheerness, which left for Ireland at the beginning of June with 4,400t of wheat.

Paul Temple, AHDB Cereals & Oilseeds Chair, said: “It is great news that the industry is collaborating and investing in new, bigger and better grain storage and loading facilities. We are seeing more bulk carriers leave the UK with loads of more than 50,000t than we ever have in the past. This gives growers access to markets both on the doorstep and more far flung corners of the globe.

“It is a reminder that we truly operate in a global market and new opportunities can open up, even in difficult times,” he added.

AHDB Market Intelligence analysts say currency volatility will continue to be a key watch factor for UK cereals and oilseeds markets. For more on AHDB Cereals & Oilseeds work with overseas buyers and information on growing for export, visit cereals.ahdb.org.uk/exports