RDP project database
Investing In Cooperative Grain Storage Facilities for Market Success
One of the largest grain cooperatives in Britain invested in infrastructure to improve the quantity and quality of grain offered to its customers, both regionally and nationally, therefore enabling all involved to enhance their competitiveness.
Grain cooperatives offer numerous benefits to farmers as increasingly the food industry wants to buy from modern, central stores capable of offering high quality management and grain that can be traced from farm to food processor. Grain stores therefore have to be of a high quality to allow the drying, conditioning and processing of grain while also being large enough to ensure continuity of supply and provide economies of scale to reduce the cost per tonne of processing.
Coastal Grains Ltd in Belford is the second largest cooperative grain store in the UK. It is a non-profit organisation with 95 members and processes around 100,000 tonnes of grain annually. With the project investment it aimed to boost its grain producing facilities as well as to supply a higher quality grain to its customers. The longer-term objective is to enable its customers to enter into higher value contracts and to improve the competitiveness of Coastal Grains Ltd and its members.
Investments to improve the infrastructure to state of the art standards were undertaken. These included the installation of new elevators and dryers enabling the cooperative to double the grain processed in one hour from 120 tonnes to 240 tonnes. In addition, investments were made in crop testing equipment (purchasing the latest mycotoxin testing equipment) in order to ensure the produce is able to meet the increasingly high standards of today’s food industry.
Results & Benefits
The main benefit to the cooperative is the improvement of its processing facility and the service it offers its members. Benefits for members of the cooperative: reduction of the period that crops are on the farms; more types of grain able to be treated faster resulting in better quality grain and improved segregation; improved financial returns for members in the price received for grain that is stored and marketed through Coastal Grains, as well as improved gross margins through cost savings.
Being a forward thinking company allowed the cooperative to remain at the forefront of developments in the food market. By applying for project funding the cooperative has been able to improve the products and services it offers to its clients. This has shown that, while expensive, investment in quality benefits both the investor and their clients and ultimately guarantees quality food available in the market.
Project location and other information
Belford, North Northumberland.
North East (England)
Total project cost (€)
3 343 634
EAFRD contribution (€)
1 337 452
Private contribution (€)
2 006 182
+44 1668 213568
Languages for contact
At a glance
Final beneficiary type
> €500 000
Theme / Measure:
Competitiveness of Agriculture & Forestry
Restructuring, developing physical potential, and promoting innovation
125. Infrastructure related to the development and adaptation of agriculture and forestry
Food quality , Quality control, Cereals, Competitiveness , Marketing