In this article, we will discuss the grain business in Liverpool and the county of Merseyside, which is primarily associated with the corn trade. This history can be quite instructive for modern-day entrepreneurs. So, let’s explore at liverpool1.one how the grain trade made it possible to both earn a profit and meet the needs of local residents.
Liverpool Corn & Feed Trade Association – The Rich History of a Great Organisation
We are talking about the Liverpool Corn & Feed Trade Association. It is the oldest active grain trade organisation in the world!
Early Years
Until 1806, Liverpool’s corn market used a building near the Town Hall. But in 1806, a company was formed which issued 100 shares at £100 each. The association also used the Atlantic Building on Brunswick Street, where a ‘Newsroom’ was established. The Liverpool Newsroom was called The Atlantic.
This company was then known as the Corn Exchange or Liverpool Corn Exchange Limited and was housed in a commercial building on Drury Lane in Liverpool. The new building was designed by John Foster the Younger in a neoclassical style and was built of white stone. It was officially opened in August 1808.
The Exchange Becomes an Association
Until the 1840s, Liverpool imported very little grain. This was due to the then-active Corn Laws, which restricted its import. This policy allowed the government to maintain high prices for grain crops to protect the local agricultural sector.
However, the laws were soon repealed. This change was driven by the growing urban population, whose needs had to be met. Liverpool then became a crucial port that literally fed the country, including the county of Merseyside, and also fuelled the Industrial Revolution.
In June 1852, a serious accident occurred when the floor inside the building collapsed. After this, the Corn Exchange was rebuilt to a design by Sir James Picton between 1853 and 1854.
Thus, in 1853, the Liverpool Corn Trade Association was formed, with Robert Woodward as its first president. It continues to function to this day and is the oldest such grain trade organisation.
Further Changes
In 1883, a structural change occurred which also affected the institution’s name. It was now called the Liverpool Corn Trade Association (LCTA) and operated under the leadership of Edmund Taylor, its new president. He was instrumental in establishing contracts for the supply of different varieties of wheat. It was then that the rule of mandatory enforcement of grain contracts was introduced for the first time in the world. In 1886, the society was incorporated, and standards for grain were created, along with specific rules concerning arbitration, payments, and so on. It was soon decided to consolidate these rules into a single framework, termed the ‘rationalisation of trade’.
By 1868, the Association was already managing new, purpose-built facilities in Waterloo and at East Float, Birkenhead, for grain in sacks or in bulk. These were the only places in Europe that could receive and unload vessels of 5,000 tonnes. However, supply volumes continued to increase, which led the association to commission a grain silo at Alexandra Dock. Further expansion transformed Liverpool into the largest centre for grain milling and storage in Europe.
When Great Britain introduced a levy on wheat, the LCTA was categorically opposed to it. From then on, significantly less American wheat was imported; instead, it began to be brought in from Argentina. This situation persisted until the start of the First World War.
The Impact of the World Wars
During that period (1914–1921), control was established over the import and movement of grain within Great Britain. Liverpool’s geographical position made it the country’s ‘bread basket’. At the end of the war, 62 ships laden with grain were docked in the city’s port to help alleviate the hunger that was rampant in the nation. 19 members of the LCTA were killed during the hostilities.
In the ‘depressed’ years of 1921–1930, trade through Liverpool grew even more. During this period, the LCTA built silos in Manchester, and both ports became delivery points. In the 1930s, a decline began, and in 1935, the futures market was suspended. The government tasked the LCTA with supplying the entire North West and North Wales with grain and animal feed. During this war, another 29 LCTA members were killed.
In 1941, the Corn Exchange building was destroyed during a bombing raid in the Blitz. In 1953, on the 100th anniversary of the LCTA, the foundation stone for a new building was laid to replace the one that was destroyed. In 1981, the LCTA was renamed the Liverpool Corn & Feed Trade Association, a name that has remained to this day.
In the second half of the 20th century, the building was used for offices. However, in March 2016, Liverpool City Council approved plans from the Dublin-based hotel developer Staycity to convert the building into around 200 new apartments and studios. The renovation was completed in 2018, with the opening taking place in October.
The Legacy of the Corn Exchange
Some records from the LCTA have been preserved, which allow us to draw certain conclusions, analyse the history of the trade, and see how government laws affected the business. These documents are held at the Maritime Museum. The collection includes records from the Liverpool Grain Contract Insurance Co and the Liverpool General Produce Association, among others.