Britain’s wheat industry enjoying boost from fall in sterling after Brexit referendum vote

25.07.2016

Britain’s wheat industry is enjoying a boost from the fall in sterling, following the Brexit referendum vote.

The fall in the pound has meant UK wheat has become more competitive against rivals in the world market.

Freight rates have also reduced which has meant the commodities from the UK have become cheaper to export.

One large UK port, the Grain Terminal in Ipswich, reported a 50 per cent rise in exports in the first half of 2016 at more than 550,000 tonnes.

In some cases it has become cheaper for US buyers on the east coast to import British stock rather than buy from elsewhere in the country. It has been reported that 63,000 tonnes were sold to the US in May alone.

However competition is increasing in the second half of the year, particularly from the Ukraine and Russia, where harvesting is currently underway, according to the FT.

 


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