United Kingdom: Situation and Outlook Update

Five months into MY2021/22 the situation and outlook for the UK grain sector is starting to become clearer. Total feed grain consumption is forecast to decline year-on-year, mainly due to reduced demand from compounders. Supply chain challenges and high input costs are leading to herd rationalization. Food, Seed and Industrial (FSI) usage of wheat is forecast higher than previously, supported by usage in the ethanol sector. As well as a switch back to domestic wheat from imported corn in MY2021/22, the UK’s second biofuel plant is expected to reopen shortly. The sector is experiencing increased demand due to the move to E10 fuel in September.