The plant鈥檚 closure, attributed to the ongoing uncertainty surrounding the US-UK trade deal after the government announced it would remove tariffs on US bioethanol imports, is expected to have an impact on local wheat growers and the broader agricultural industry.
Owned by ABF (Associated British Foods), the Vivergo plant has been a vital market for domestic wheat, purchasing up to one million tonnes annually from more than 4,000 UK farms, primarily in Yorkshire and Northern Lincolnshire.
In a ABF said: 鈥淭he decision to close the plant follows extensive discussions with the Government to find a regulatory and financial solution that would enable Vivergo to operate on a profitable and sustainable basis.鈥�
鈥淣ot only is it terrible news for those hundreds of workers who will lose their jobs but also for the thousands of people whose livelihoods depend on that supply chain.鈥�
NFU Combinable Crops Board Chair Jamie Burrows
It said that the way regulations were being applied to 鈥渇avour foreign producers" in addition to removing the tariffs on US bioethanol coming to the UK undermined Vivergo's commercial viability, later adding that 鈥渢he government has decided not to offer either short-term financial support or the long-term regulatory certainty we sought鈥�.
Government must recognise value of market
Responding to the news, NFU Combinable Crops Board Chair Jamie Burrows said: "The closure of the Vivergo plant is a huge blow. Not only is it terrible news for those hundreds of workers who will lose their jobs but also for the thousands of people whose livelihoods depend on that supply chain 鈥� that includes local farmers who have lost a vital market for their product.
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鈥淏ioethanol production in the UK is such an important industry. The volume of wheat entering the supply chain has been as high as 1.2m tonnes. It also plays a key role in producing a vital source of animal feed as a by-product and CO2 used by the wider food supply chain.
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鈥淲e need government to recognise the potential economic growth and value of this market by ensuring crops grown for biofuels are used increasingly in road transport and aviation. This will open up further market opportunities to incentivise growers to support the country鈥檚 biofuel plants.鈥�
ABF has said Vivergo will cease all production of bioethanol and animal feed by 31 August 2025.
