Grain pessimism
National Grain Committee Chairman Paddy Harrington advised malting barley growers that spring barley seed can be purchased as low as €390 per tonne. He said 10-10-20, 18-6-12 and CAN can be purchased for €218 to €222 per tonne; €205 to €210; and €176 to €182 respectively (for payment at the month end following the month of delivery).
“Unless growers can purchase their inputs, including seasonal credit, at the most competitive prices available, they will not survive. Merchant harvest credit, at 12% to 16% APR, is extremely expensive given, that seasonal credit can be obtained from all the major lending institutions for as low as 3.8% APR. Many farmers are not offered these rates unless they look for them”.
Mr Harrington said the malting barley premium was worth €22 to €25 in the early 90s, and a bonus of €16 was paid for low protein barley. Many growers were able to achieve the full bonus of €38 to 41 on top of a high base price of €130. But with Minch Malt no longer paying a bonus for low protein and a 45% drop in the base price, growers’ margins are decimated.
