John Hutcheson ©Steve Brown

Fife grower John Hutcheson started drilling oats again to meet the rising consumer demand for porridge and a plethora of new breakfast cereal products.

He is now one of a group 70 oat growers supplying more than 55,000t annually to Quaker’s main manufacturing site at Cupar through grain-handling business GrainCo.

Twelve years ago, when Mr Hutcheson reintroduced oats at Leckerstone Farm, there were only three founder members of the supply group so he has witnessed rapid expansion.

“Quaker has increased its requirement for oats on an annual basis, invested in the mill and developed its product range. So by committing to milling oat production, we have been able to help them keep up with the pace of demand and share in their success,” he says.

Fact File: Quaker Oats

• The milling and manufacturing group sources about 108,000t of oats every year from British farms.
• Started over 100 years ago, it is now a global brand across seven continents, as well as being the leading UK porridge brand.
• During 2014, a significant amount of the company’s production from its main factory in Scotland was exported to 57 different countries.

©Steve Brown

• As the popularity of porridge has grown, Quaker has developed the market by combining quick and easy formats, such as its Oat So Simple pots and sachets, with a wide range of flavours. Today, one in two Britons are porridge eaters, with almost a quarter of them enjoying a bowl daily.
• Quaker’s parent company, PepsiCo, continues to invest in oat growing and milling technologies. An annual oat milling improvement conference is held to share its learnings, while ambitious sustainability targets are being met through close collaboration with growers.

See also: Oats offer simple solution as valuable cover crop

A two-way flow of information between growers and Quaker – which is part of the US food and drink conglomerate PepsiCo –has been important, stresses Mr Hutcheson.

“We meet up with them every year, not just to negotiate the forward contract, but also to share agronomy and best practice advice,” he says.

Mr Hutcheson adds there is a good working relationship, based on professionalism and commitment, between both parties who now have a much better understanding of each other’s requirements.

From his point of view, being associated with a strong consumer brand and a healthy product with Scottish heritage makes good business sense.

“It all comes back to help farmers. It wasn’t too long ago that oats were out of favour and the market had contracted right back.

“Now it is a crop with a future. The porridge market has been transformed and new uses for oats are being developed,” he says.

Mr Hutcheson grows spring oats as a break crop on the 990ha he farms near Dunfermline.

“Oats are flexible. They can follow any crop and grow well on most soil types,” he says.

His contract has no restrictions on variety choice, so he works from the latest AHDB Recommended List when making his selection.

“Of course there are varieties that Quaker prefers, but its key requirement is for the right grain specification.

“That makes characteristics such as kernel contact and specific weight very important,” he says.

The grower group works to ensure that there is a consistent intake at the mill, which is essential for its efficient operation, as Quaker needs to know exactly what it is getting.

Otherwise, extra care has to be taken at the farm level with storage and transport hygiene, because contamination is a big issue for the food industry.

While there is a template for agronomy, Quaker recognises that every farm is different and has specialist growing skills, reveals Mr Hutcheson.

“For us, the main element has been to make sure that our timing with the use of chlormequat is spot on, to avoid any residues. It can’t be applied late,” he says.

In addition, contracted growers have to make a commitment to producing oats, as agreements are for two to three years.

“Oats have become a permanent part of our rotation. It’s also necessary to have storage of the right quality and be within the Scottish central area,” he says.

The recent oversupply in the oats market, after two bumper years of price swings, has had to be managed, he admits.

“We’ve been able to have those discussions with Quaker and introduce measures to even out production.

“It is another advantage of working closely with a processor that understands the issues,” he says.