Cheap grain from the East under fire
IFA National Grain Committee vice chairmen Jack Williams said these imports are distorting the internal EU market and collapsing grain prices across Europe.
“If they do not take action immediately, the EU will become a net importer of grain instead of a net exporter, and intervention grain stocks will rise to an unmanageable level.
“Tariffs should be calculated off true world prices, not inflated US prices, or else quotas based on historical import levels should be put in place for the different countries,” he said.
Dairygold has meanwhile decided to pay 94/t for feeding wheat, 92/t for feeding barley, 88/t for oats and 108.60/t for malting barley.
Glanbia has also announced that it will pay 89/t for feed wheat and 88/t for feed barley. In addition, it will continue to operate its market-based review until March 2003, which, it says, will allow growers to benefit fully from any uplift in the market during this period.
The IFA, which has demanded a minimum on-account price of 94/t, welcomed the Dairygold decision, but described Glanbia’s harvest prices as not reflecting the market situation, which was tending to harden across Europe. It also described a quote of 85/t for wheat by Drummonds, who operate in the north east, as being totally out of kilter with market prices.
A meeting of northeast grain growers in Slane, Co Meath, demanded immediate action on a number of fronts to stop grain prices collapsing. Mr Williams said grain growers should demand at least 94 and 92 per tonne on account for wheat and barley at 20% moisture exclusive of VAT, respectively. Any rise in the price of grain should be reflected in the final price paid.
Even at these prices, growers are losing substantial sums of money considering it costs in the region of 105 to 115 per tonne (excluding fixed costs and land rental) to produce a tonne of green grain.
For many growers, it would make more financial sense to opt for 100% set-aside, he said, adding that the IFA will be demanding that this option is made available to growers.
Teagasc chief tillage adviser Jim O’Mahony has predicted that lower yields, reduced prices for grain and additional disease control costs, to minimise the effects of the bad weather, would have a significant impact on tillage incomes in 2002. Many tillage farmers could see their incomes fall by 50%. Improved yields of straw and increased prices for barley straw are providing some consolation to tillage farmers, he said.
