Glanbia names €95 barley price

Glanbia Agribusiness has announced it is to pay €95 per tonne on green feed barley and green feed wheat this harvest, but the IFA has accused it of trying to collapse grain prices.

The firm explained however, feed barley prices are subject to a final market-based review in early October and feed wheat prices in late March 2005. Glanbia purchases grain for incorporation in its animal feeds and for trading on the open market in Leinster and east Munster, where there is significant variance in local prices.

The group, which is the first of the major players to announce its harvest prices, said it is committed to sourcing 100% of its grain requirements from Irish producers.

IFA Grain Committee chairman Paddy Harrington said Glanbia was quoting €5-€7/tonne below what the market can deliver by basing its green price on the spot market leaving farmers who have delivered in grain no option but to take a price which is €10-€15/ tonne below the cost of production.

“Glanbia is opportunistic and disingenuous to its grain customers, abusing its dominant market position by demanding excessive margins from the drying, assembly and storage of grain at the expense of grain farmers.

“Growers should adopt a similar pricing policy to Glanbia when paying for their inputs and price them to the imported price,” he said.

Before factoring in yield increases, the majority of wheat growers this harvest will need to achieve yield increases of 1.2-1.6 tonnes/acre and barley growers 0.8 tonnes/acre at Glanbia’s quoted price to maintain last year’s income levels.