The grain prices inclusive of co-op supports and loyalty bonuses announced by Glanbia and Dairygold this week are encouraging given the prolonged weakness in global grain markets.

These prices will put pressure on other co-ops and independent grain merchants to match and pay a similarly strong price. This shows the strength of the Glanbia model. In times of poor commodity prices, it is able to support grain prices, similar to dairy for its shareholding members. Dairygold must also be commended for following the strong price, especially considering it doesn’t have a PLC dividend income stream and all its supports must come from its dairy and grain operations.

This sets a benchmark price for grain and gives some confidence to a sector that is making decisions today for a crop that will not be harvested for nine months.

A longer-term strategy is required should grain prices need to be supported by this level into the future.