Bioethanol demand pushes UK to become net wheat importer

Expanding growth output at the UK’s bioethanol plants is driving up wheat consumption, contributing to the country becoming a net wheat importer for only the fourth time in 25 years, according to an article on Agrimoney.com.

Defra, the UK’s farming ministry, pegged the country’s wheat exports at 1.5 million tonnes in its first forecast for the country’s wheat exports in 2016-2017. If correct, that figure would represent a fall of 47% on the previous year, and the weakest figure since 2014, when crop yields were still low in the aftermath of a period of devastating heavy rainfall in 2012.

According to Agrimoney.com, Defra has raised its estimate for UK wheat imports this season by 100,000 tonnes to 1.70m tonnes. Despite this, UK inventories were forecasting ending this season at 2.04 million tonnes, down 27% on the previous year due to a relatively weak harvest and growing domestic demand.

UK wheat consumption this season is at a record high, 15.69 million tonnes, 6% rise year on year. The Agrimoney.com articles suggests that recovery in the UK bioethanol sector is the main driver of this growth, leading to an all-time high in demand for wheat in human and industrial use. The amount of wheat expected to be used in the UK bioethanol industry is now 12,000 tonnes higher than forecast by Defra in March.