Cereal growers warn margins to fall

THE country’s cereal growers warned yesterday that their margins this year will fall by up to €240 an acre.

Irish Farmers’ Association Grain Committee chairman Colum McDonnell blamed dramatically increased fuel and input costs and falling grain prices.

“While EU and international grain prices have slipped in recent days, the situation for Irish growers has been aggravated by the fact that a number of the key traders and merchants have colluded to drag grain prices below market value,” he said.

Mr McDonnell said two of the bigger co-ops have indicated that they want to increase their drying and storage margin by up to €50/t, which is over 33% of the indicated green purchase price.

“Growers use 70 to 80 litres of diesel per acre to bring a crop from sowing right through to harvest (excluding drying costs). With fuel prices up by over 30 cent per litre, excluding value added tax, this has added up to €24 per acre to the cost of cereal production,” he said.

Mr McDonnell said fertiliser costs have increased by an average of 65%, adding a further €70 to €80 per acre.

“The combined effect of dramatically increased costs, coupled with lower grain prices, will see growers once again subsidising grain production from their single farm payment or other enterprises, as margins fall by up to €240 per acre,” he said.