International grain prices weakened further over the past week at a critical time for Irish producers. With major Irish co-ops and grain buyers set to finalise their green prices in the coming days, the price levels suggested offer little hope to hard-pressed cereal producers.
Price is critical to margin and anything below €150/t will force many growers to once again subsidise grain production. This will result in decreased grain area with increased dependence on imported grains. Any grain area reduction will also impact on the turnover of many of those who currently purchase, trade and use the harvested crop.
IFA president Eddie Downey called on grain merchants, co-ops and compounders to support growers through strong grain prices. Current green and dried grain price offers are significantly below the cost of production. “Despite good yields, growers will again be forced to heavily subsidise grain production from their Single Farm Payment or other reserves,” Downey said.
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He asked the industry to “take a more strategic and long-term view of the sector by supporting growers through a strong grain price this year. Failure to do so will see a significant fall-off in production resulting in increased dependence on imported grains. This could expose Ireland’s valuable livestock sector to even greater supply and price shocks for feed in future.”
IFA grain chairman Liam Dunne said: “We have a premium crop this year so price should command a premium rather than a discount over imported prices.” He called on the supply trade to do their bit by reducing margins on input costs.
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International grain prices weakened further over the past week at a critical time for Irish producers. With major Irish co-ops and grain buyers set to finalise their green prices in the coming days, the price levels suggested offer little hope to hard-pressed cereal producers.
Price is critical to margin and anything below €150/t will force many growers to once again subsidise grain production. This will result in decreased grain area with increased dependence on imported grains. Any grain area reduction will also impact on the turnover of many of those who currently purchase, trade and use the harvested crop.
IFA president Eddie Downey called on grain merchants, co-ops and compounders to support growers through strong grain prices. Current green and dried grain price offers are significantly below the cost of production. “Despite good yields, growers will again be forced to heavily subsidise grain production from their Single Farm Payment or other reserves,” Downey said.
He asked the industry to “take a more strategic and long-term view of the sector by supporting growers through a strong grain price this year. Failure to do so will see a significant fall-off in production resulting in increased dependence on imported grains. This could expose Ireland’s valuable livestock sector to even greater supply and price shocks for feed in future.”
IFA grain chairman Liam Dunne said: “We have a premium crop this year so price should command a premium rather than a discount over imported prices.” He called on the supply trade to do their bit by reducing margins on input costs.
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