Cereal production rises by 50m tonnes but prices go into reverse

FARMERS in the European Union successfully responded to market signals by increasing cereal production by more than 50 million tonnes this year, but prices have reversed their upwards trend, according to Copa-Cogeca.

The umbrella bodies for European farmers and agri co-ops said prices have fallen to a much lower level than one year ago, with no visible signs of this price benefit at consumer level, while input prices, such as fertilisers, have rocketed, putting unbearable pressure on production costs, clearly jeopardising farmers’ income and ability to produce.

Copa–Cogeca’s Animal Crops Committee president, Paul Temple, warned market prices are not covering production costs even if you include the single farm payment.