The Dalmark Group shareholders have taken the decision that they no longer wish to be involved in grain trading.
The group’s grain function, Dalmark Grain Limited, a subsidiary of J.E & V.M Dalton Limited (t/a Dalton Seeds) was established in 1976 and has enjoyed many successful years serving local farmers. The shareholders have concluded, however, that the current structure of the UK grain industry no longer allows for a small, regional merchant to be profitable.
The shareholders have agreed in principle that Cefetra Limited will take on the stock and forward book – an agreement that is expected to be finalised and executed during February.
The business has no liquidity or solvency issues and is fully cross-guaranteed by J.E & V.M Dalton Limited, a business that has net assets in excess of £7 million.
Managing director of J.E & V.M Dalton Limited, Peter Fox, commented:“Given that our grain business has been in existence for over 40 years, naturally this is a sad day.
“We are fully committed to UK agriculture and have done everything we can to avoid this day, but given the structure of the market place, have had to finally accept that our involvement in grain is no longer realistic.
“I am pleased that we have come to this agreement with Cefetra over our contractual position, and particularly pleased that they have offered a job interview with each and every member of Dalmark Grain staff affected.”