Wheat and barley yields disappoint many growers

COMPETITION for grain has intensified in the last week, according to the IFA, which has urged growers to shop around for the best prices.

It said merchants and traders realise that yields and grain supplies are well short of the initial estimates.

Grain Committee chairman Paddy Harrington said the winter wheat harvest is now getting into full swing, in the north, midlands, east and north east.

However, wheat and barley yields, particularly on the heavier soils, were disappointing. Wheat yields varied from 2.5 to 4.4 tonnes per acre and the crop will do well to average 3.4 to 3.6t, according to IFA.

Mr Harrington said many merchants now realise the grain is not there, and they are anxiously canvassing growers who have grain to cut, or in temporary storage, to supply them. He said private merchants are doing deals for €110 to 112 per tonne for green wheat and €97 to 105 for green barley.

A large tonnage of grain has traded direct from farm to farm, crimped and as green grain. Many livestock farmers have taken advantage of the low moistures, and decided to purchase the bulk of their concentrate feed supplies direct from growers this harvest.

Mr Harrington said dried wheat prices continue to rise, with €135 to 136 on offer this week. The strong wheat prices were putting a floor of €122 to 124 under the price of barley.

For many growers who are prepared to shop around, this is translating into a green price of €110 to 115 for wheat and €98 to 102 for barley. Growers who have grain to cut, or green grain in temporary storage, would be well advised to shop around before selling, as good deals are available, he said.

Mr Harrington said world grain supplies are extremely tight and prices have responded accordingly. British wheat prices are up stg£24 on last season.

The combined harvests of the EU, Russia and the Ukraine are back by 44 to 46 million tonnes. The European Commission’s decision to release 1.35 million tonnes of intervention rye and barley onto the market has had minimal impact, and wheat prices continue to harden €2 or 3 over last Friday’s closing price.

Mr Harrington said Glanbia and Dairygold’s attempts to undermine the price of grain by quoting ridiculously low prices of €93 to 102 for barley and wheat, respectively, have backfired on them.

“Other grain buyers have seen an opportunity in the market and are doing deals far in excess of the officially quoted prices,” he said.

Mr Harrington warned that unless farmers receive a realistic price for their grain this harvest, many will stop growing grain when full decoupling is implemented. “Wheat and barley is worth a minimum of €110 and €100 at 20% moisture, exclusive of VAT, and growers should settle for nothing less,” he said.

Tillage farmers demanding prices that reflect market realities protested outside Dairygold Co-op in Mitchelstown last week. Later they lobbied members of Dairygold’s Mallow regional committee as they arrived for a meeting in the town.