Devon farmers add value to straw through pelleting business

The production and sale of straw pellets for the pet industry made from wheat straw has created a new valuable business venture for Farmers Weekly 2023 Diversification Farmer of the Year winners Johnny and Clare Clapp.

The farming enterprise in Devon generates additional revenue through the production and sale of straw pellets to supermarkets and pet suppliers.

Wheat straw from the arable business is dried on farm using excess heat from the farm’s anaerobic digestion (AD) plant and is then turned into small pellets.

See also: Farmers Weekly Awards 2023: Diversification Farmer of the Year finalists

These are sold in bulk to the pet industry for use as bedding and cat litter, with the products retailed in bags by a number of major supermarkets.

Johnny says that after the success of the wheat pellets, they are now carrying out development work as well as looking at creating wood pellets and hybrid pellets.

© Emily Fleur

“We are now looking at putting the pelleting enterprise into a separate company so we can pull out the costs easier.

“Also, from a marketing point of view, we want to try to work more directly with the people who are selling it.”

The products are currently sold in Sainsbury’s and are due to start being stocked in Asda this summer.

“We are trying to find someone who will bag it on our behalf, without the business having to invest £100,000-plus in a bagging machine,” says Johnny.

Farm structure

The farm has an arable enterprise, a herd of pedigree Charolais cattle, and contract farming agreements.

More than 1,000ha is farmed in-house and they have recently taken on an additional 300ha.

“There are a lot more opportunities. I think with direct payments disappearing, a lot of farmers just don’t want the hassle. The government schemes are making it challenging.

“The trouble is people can put wild bird mixtures in and get close to £900/ha and that’s what your rent has now got to be based on, if not more, which is not great.

“Thankfully, they have limited it to a certain percentage of the farms,” says Johnny.

Clare runs the beef enterprise, rearing and selling pedigree Charolais bulls through the Cove Charolais herd.

This year has been more challenging for calving, with lots of bigger calves creating issues.

Johnny says calving problems seemed to be more prevalent this year generally and he had heard of other farmers struggling.

However, bull sales by the pedigree herd have been going well.

The farm’s AD plant provides a way to use crops grown on the farm and manure from the cattle to generate renewable energy.

The plant produces biogas, which is then used to generate electricity and create a revenue stream.

Digestate produced by the AD plant is spread on the land by the arable contracting team, acting as an organic fertiliser and helping to improve soil health and productivity.

Diversification

Johnny and Clare also run Hartnoll Business Centre, a business park they developed after converting buildings on the site of the original farm.

It includes commercial properties let out for light industrial use, offices, retail units, a gym, and a small number of residential units.

There are also 100 self-storage containers let out at the business park, providing additional revenue.

The out-of-town location, with good road links to the M5, has helped the business park become a success, with many tenants relocating out of Tiverton.

“We are getting lots of enquiries from new potential tenants at the business park, but are constrained with planning,” says Johnny.

As for many farm businesses, planning has, at times, limited growth for the Clapps.

However, they are working hard to engage with councillors and the local community.

Johnny says overall the business had a good year financially last year, but some costs, such as machinery, have gone through the roof.

He adds that by having a diversified business, one enterprise might be up one year and one might be down, but overall, it all works together and evens out, helping to provide some stability.