Black Sea feed grain and US corn glut set prices
Grain production in countries like the Ukraine was hit by drought last year; but exports of their 20m tonnes crop in 2002 left growers in Ireland and other EU countries fearing for the future.
Two years later, UK wheat growers are now bearing the brunt, with November wheat futures driven under €100/t, or just over €90 ex-farm.
UK and Irish growers can only hope exports through Black Sea ports dry up early. But this is unlikely, if promising yield reports in Russia, Hungary and the Ukraine are accurate.
Here in Ireland, Sinn Fein agriculture spokesperson Martin Ferris, TD, said farmers on both sides of the border had alerted him to the import of Ukrainian grain into the Six Counties.
He said, “It would appear massive quantities of grain are coming into this country via Belfast and Warrenpoint, from the Ukraine. This grain is imported by meal merchants and bought by farmers for use as feed. This is despite the fact that the grain is not quality assured and we have no idea what chemicals may have been used in its production”.
“There is also the issue that the imported grain is having a depressing effect on the prices which merchants will pay for home produced grain, while they are not passing on the lower costs to the farmers who buy it as meal.”
In response to grain quality fears expressed by Mr Ferris, a spokesman in the Department of Agriculture in Dublin said all animal feed importers are required to give five days notification of imports, in order to allow authorised officers check and sample the materials for detection of any dangerous additives or residues.
“We are continually developing a strong working relationship with colleagues in Northern Ireland which ensures close co-operation between control authorities in the animal feed area”.
Feed wheat delivered to ports in the Black Sea is priced at €70/t, according to sources in the UK grain trade. They say the record maize yields forecast in the US will also set the world feed grain price. As a result, prices could come under pressure for feed grain producers in Ireland and the UK who do not reach high quality standards.
However, prospects for malting barley sales are more encouraging.
In this case, central and eastern Europe are likely to be rewarding export markets, due to growing demand.
