Dairygold leads way with announcement of grain prices
The company decided at a board meeting in Mallow 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.
IFA members from Castletownroche, Killavullen and Shanballymore branches as well as members of a tillage discussion group in the greater Mallow area lobbied Dairygold board members outside the meeting at which the co-op fixed its harvest prices.
IFA Grain Committee chairman Paddy Harrington called on other grain buyers to set a realistic on-account price immediately.
“Farmers cannot continue to grow grain at prices substantially below the cost of production.
“Unless realistic prices are paid for grain this harvest, farmers will have no alternative but to look for the option of 100% set aside,” he said.
Glanbia Agribusiness chief executive Ger Mullally said that taking into account the cost of assembling, drying and storing grain, the group’s prices are well above the current market for dried grain and represent an important support for its committed grain growers at this difficult time.
“Given the weak market conditions experienced by growers and the industry generally, Glanbia is prepared to support prices in the hope that markets will improve over the winter.
“Any such improvements will be dependent on the EU becoming a strong exporter and limiting imports into the community in the months ahead,” he said.
Mr Mullally said Glanbia purchases grain throughout Leinster and East Munster where there is significant variance in local prices due to regional production and demand.
The group buys grain for use in its animal feeds and for trading in the open market.
Its single price for the region takes account of these variances.
