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IFA: Farmers Warned Against Low Grain Prices

by 5m Editor
17 July 2008, at 1:41pm

IRELAND - IFA National Grain Committee Chairman, Colum McDonnell warned growers not to be conned into taking low prices for grain this harvest, as the trade tries to talk down prices.

Mr. McDonnell said, “There is a major concentrated effort by the trade to talk down prices and price expectations this harvest, with talks of a bumper harvest, and carry over stocks and lack of storage availability”.

“Despite the increase in wheat sowings, the overall wheat tonnage is unlikely to exceed 900,000 tonnes leaving an import requirement for 400,000 to 500,000 tonnes of wheat. On the barley front the overall tonnage will be between 1.1 to 1.2 million tonnes, marginally up on last year’s production levels . A late cold spring coupled with recent hot weather and widespread BYDV in the later sown crops will limit yield potential. On the oat front despite a large swing to winter the total acreage is marginally back on last season. The overall harvest at best is unlikely to exceed 2.2 million tonnes and if weather conditions remain poor the overall tonnage could be closer to 2.1 million tonnes.

“On the stocks front the carryover of old crop into the next season will be no higher than normal as cereal inclusion rates in compound feed rations have increased in recent weeks. Wheat and barley has become more competitive as maize prices have moved out over €240/t collected ex store”.

“In recent days there has been increased interest by livestock farmers i.e. purchasing grain for crimping or as green grain. Many farmers were disappointed with the performance of compound feed rations last winter as cereal inclusion rates were reduced dramatically. Grain off the combine represents excellent value for money given that most compound feed rations are close on €300/t.

“Grain at last year’s price levels growers will be up to €30/t worse off because of the increased cost of fuel and fertiliser alone. Trading farm to farm will afford growers an increased margin while at the same time offering significant cost savings to livestock farmers. IFA through its revamped Ifarm.ie website is facilitating the sale of grain farm to farm while guaranteeing security of payment”.

5m Editor