In the last six months the US dollar has depreciated by almost 20%. It is astonishing that all we see is speculation about tariffs and what their eventual effects on Irish and European exports to the United States might be in the future but in real time, world cereal prices are €40/t below where they would otherwise be – €40/t that would make a real difference.

This is directly reflected in Irish prices as the harvest rapidly approaches.

Irish grain growers are caught in a classic currency devaluation by the country that sets world prices and there hasn’t been a word about it.

ADVERTISEMENT

There seems to be no clear details on how much Irish grain is left sitting in stores from last harvest as Irish importers continue to bring in feedstuffs priced in devalued dollars but paid for with a strong euro.

There is only one loser from this charade – the European and, especially, the Irish producer.

The Spanish growers have protested vigorously in Madrid but here, there hasn’t been a word.

Ireland produces about two million tonnes a year but uses about five million tonnes.

The industry in general is geared to use imported product and has little loyalty to Irish-produced grain.

The fact that imported grain, especially maize, is produced with both GM – a technology not allowed in Europe – and with agri chemicals banned in Europe has zero effect on policy.

Our new minister may say that tillage is at the heart of Irish farming but if no action is taken, then he will preside over a sector that will steadily contract and is in danger of disappearing.

We have been here before when agriculture was burdened with an overvalued currency.

At that time in those pre-euro days, the Central Bank of Ireland set the exchange rate.

The IFA resigned from the board in protest at the bank’s refusal to countenance a devaluation of the Irish currency.

Ultimately it had to acknowledge reality and devalue but there was a farming voice around the table that made a difference. There is none at the moment and the problem is not even being recognised.

The distortions caused by currency fluctuations are well recognised.

Within Europe, there used to be a system that compensated producers that were adversely affected by internal currency distortions.

It is time to recognise that European and especially Irish cereal producers are uniquely exposed to distortions in world prices. Immediate intervention is warranted.