The UK may be poised to leave the list of net grain exporters thanks to a jump in domestic demand caused by the opening of biofuels plants, Wynnstay Group has said, announcing a 2.4% rise in earnings.

Britain, whose which has historically exported roughly 10% of its cereals harvest, will find this surplus swallowed up by facilities converting grain into bioethanol.

The Ensus Wilton plant, which Glencore is to supply with 1.2m tonnes of wheat a year, is due to come on stream this summer, with a larger facility planned by Associated British Foods and BP due for completion next year.

"If the proposed plants reach their anticipated capacity, the UK will approach a potential equilibrium for grain supply and demand," John Davies, the Wynnstay chairman, said.

'Climate and expertise'

The market for arable products was already "buoyant", with the UK well placed for long-term growth thanks to its geography and skills.

"Demand for agricultural products in the world market remains strong and, with an increasing population, is set to continue," Mr Davies said.

"The UK has the climate, resources and expertise to take advantage of this long term demand."

Farm scrimping

The comments came as Wynnstay unveiled earnings of £2.35m for the six months to the end of April on revenues up 1.1% at £117.7m.

While profits at its retail division jumped 23%, bolstered by acquisitions, takings in the core agriculture unit slipped 5.3% to £2.15m, reflecting a one-off gain a year before as well as a slowdown in sales.

Low milk prices had prompted dairy farmers to cut costs by feeding grain to livestock rather than Wynnstay's more expensive feeds, while arable growers scrimped on fertilizer in the face of lower commodity prices.

Nonetheless the results beat forecasts from Investec, the broker, which had forecast earnings of less than £2.1m. 

Wynnstay shares closed 6p higher at 191p in London.