Treco’s origins are firmly rooted in farming

Gordon Traill, Treco's founder and managing director, has run the 350-acre Yarde Farm, on the National Trust’s Killerton Estate, as a tenant farmer since 1984. The Traill farming days on Yarde Farm stretches to as far back as the early 1920s when Gordon's father and grandfather used to work the land.

Yarde Farm is situated on the river Culm and much of the grazing is unproductive permanent pasture with 170 acres of land liable to flooding. The primary enterprise at Yarde Farm was dairy comprising 180 cows managed as a flying herd with calves reared for beef. Forage was produced from 100 acres of maize and grasslands.

In 2004, when cereal prices hit a 30-year low at £65 a tonne, it became apparent to Gordon that, as opposed to selling his grain at a loss, he could use it to offset his heating costs. Burning the grain instead of the heating oil – which had already been bought and paid for – would give a fuel cost saving of 50%. In fact, even at today’s price of around £140 a tonne, savings of 30% against oil are easily achievable.

Gordon was on a mission to search for a biomass boiler to burn the grain he would otherwise have to face selling at a significant loss. Unfortunately, he found nothing suitable in the UK. 2005 marked the birth of Treco as a diversification business, importing and installing a range of biomass boilers which burn wood chips, wood pellets, grain or miscanthus as fuel.

In 2009, Yarde Farm faced numerous challenges including the imminent introduction of Nitrate Vulnerable Zones, insufficient slurry storage, milk price volatility, poaching risk to sensitive meadowland and the need for large capital investment in dairy buildings and equipment.

In response, a switch from intensive farming to extensive was planned. Following a successful application to enter a Higher Level Stewardship scheme, the dairy ceased production in August 2010. Soon after, extensive beef production began; a process being further complicated by TB reactors on the holding.

The present farming business generates relatively low levels of profit. However the farming system meets the requirements of the various stakeholders including the National Trust, DEFRA (NVZs) and the public.

As the system associated with extensive farming is far simpler than intensive, it has been possible to devote more management time to the biomass boiler business. Treco has grown significantly since its conception and currently employs nearly 60 people.

As a result, there is less pressure on the farm business to provide both income and a pension sufficient for Gordon to retire comfortably on. Having been blessed with three daughters, Gordon hopes to one day be able to hand over his business so they may carry on his legacy.

Biomass system details

In 2005, a 45kW biomass boiler burning wood pellets and grain was installed. Not only did it work a treat at heating the farm house, but it also made a significant saving of 50% versus oil.

With the introduction of the Renewable Heat Incentive (RHI), it made sense to replace the boiler. In 2012 the system was extended to a 100kW Guntamatic Powerchip that is able to run on wood chips, wood pellets, grain or miscanthus, offering the Farm both future fuel security and choice. In addition to serving a mini district heating scheme, it also heats a draughty thatched farm house, offices, workshops and a pie factory, qualifying for an £11,000+ annual RHI income. This is index linked to inflation for 20 years. The commercial value of the installed biomass boiler system was approximately £73,000 which included all components, underground insulated pipe, RHI approved metering and ground works.A detailed look at this case study is available to view.

The biomass boiler is run on wood from the National Trust’s Killerton Estate. This gives a fuel cost saving of 80% or roughly £8,000 a year when compared to heating oil. The combined fuel cost savings and RHI payments deliver a £19,000 annual net value. Payback on the capital cost and total project outlay is expected within 4 years. The biomass boiler is also being used as a test facility for Treco's R&D while a further woodfuel drying business is being considered at present.

What lessons have been learnt?

The best person to answer this would be the man behind Treco himself.

"I’m not sure it is about lessons learnt per se. I may not have so many grey hairs if I hadn’t have started Treco, but then again, I may have ended up with even more!

As the financial climate became increasingly difficult, I was forced to explore other land usage options. I recognised that a difficult farm with a sensitive grazing landscape wasn’t conducive to running an intensive dairy unit. I was therefore forced to find an alternative income stream in order to grow and to have a worthwhile succession legacy to leave my daughters. The answer very soon became clear to me – biomass boilers. Saying that, if I had have known how difficult running a business can be, I may not have started!

Standing here, I can safely say that one of the major lessons came from a throwaway line a friend at Wiseman’s Dairy once said to me: “Never be afraid of employing people more clever than yourself.” So, I’ve learnt that you need to always employ good people, but this does not always mean that they are right.

Farmers are essentially problem solvers by necessity with a can-do mentality, used to working to absolute deadlines and very brief time slots. For instance, crops need to be planted within very specific times and you are forced to focus on what can be done, rather than what cannot."

What advice does Gordon have for other farmers?

"Don’t be afraid to take a risk! Although we’ve also had a fair amount of luck, both the farm and biomass boiler businesses have gone through some very tough times. There were times we thought we would sink but we took some risks and managed to ride the storm.

A successful businessman friend once said: “You must never be afraid to borrow money”, which has always resonated with me. I think a lot of tenant farmers may not think they can successfully manage diversification. The reality is that it may be easier than they might think, whether it be with holiday lets, rental units or renewables like wind, solar or biomass boilers.

I would also say that the Renewable Heat Incentive is generous just now, but won’t be open to new applicants forever. So I would strongly advise farmers to look at how the scheme could work for them sooner rather than later."