Sector warning despite grain price rise

FARMERS have celebrated a 100% grain harvest price rise in two years.

But this price trend and other huge changes afoot in agriculture could leave some in the sector struggling to keep up.

At a seminar organised at the Ploughing Championships yesterday by the Irish Examiner, there were warnings of a “gruesome” end for some livestock farmers squeezed out by the high grain prices, and advice for other farmers not to jump carelessly on a grain bandwagon.

“The era of cheap cereals is over,” said Teagasc tillage specialist Jim O’Mahony and he said this happened just in time for grain growers who were going broke due to years of low prices. But a 30% price cut next year could spell the end of a short lived boom, he advised.

He confirmed that Teagasc is getting enquiries from farmers thinking of ploughing up grass and sowing cereals. Don’t splurge on high rents, he is telling these farmers, many of whom are cattle and sheep farmers disillusioned by years of low profits, but facing major technical requirements, and a shortage of winter wheat seed, if they are to successfully switch to grain.

Not just in Ireland, but across the EU, cattle feedlots will close down unless they get a beef price rise to match the grain cost increase, said IFA deputy president Derek Deane.

He said it could be hard to recover Ireland’s €1m beef cows if the latest changes shut down suckler farming.

Meanwhile, his colleague IFA President Pádraig Walshe was highlighting the plight of the 7,000 directly employed in pig production in Ireland, now in danger because high grain prices have left losses of €15 per pig.

He linked this to EU Agriculture Ministers in Brussels Wednesday failing to approve three genetically modified maizes for use in the EU, thus ensuring that high animal feed prices will continue.

He said: “I am disgusted with Agriculture Minister Mary Coughlan’s abstention in yesterday’s crucial vote. This U-turn has damaged Ireland’s credibility in Brussels and assurances given by the minister last June now count for nothing.”