Premium markets have to be questioned for the return they give farmers was one message that was clear from the Teagasc crops forum.
This, of course, raises the question whether some markets can be called premium anymore?
Speaking at the forum on 10 September, Teagasc’s Shay Phelan said malting barley has about the same margin as winter barley.
“We are starting to question those premium markets. Is the bonus that we’re getting from those premium markets enough to keep us growing for those premium markets? I think that’s a question everybody in the room needs to ask,” Phelan said.
Phelan outlined: “Break crops are contributing more to our margins than most cereal crops now.”
He outlined how winter wheat and winter barley disappointed some farmers in recent years. He asked if cereals were now being grown to facilitate break crops.
Wexford tillage farmer Davy Keogh said: “Malting barley is comparable to beans for margin.”
He added: “Malt barley is not as profitable anymore. Effectively, the margin from malt barley is matching beans. When you put your beans into a rotation with your winter wheats and rye and oilseed rapes, basically the rotation is leaving a margin more profitable than malt.”
He commented that farmers fear the volatility in grain and energy markets at present and drops in yield this year due to weather also raised concerns.