WORLD stockpiles of cereals have grown so much from the past two years' bumper harvests that prices have now fallen to an all-time low.
According to research data this year's EU-27 total cereal harvest amassed some 285 million tonnes, and this, together with last year's exceptional harvest, has affected prices badly.
Closer to home Northern Ireland produces only one third of its total cereal consumption per year and is forced to import the remainder to meet demand.
This forces prices to be dictated by world markets which this season has meant cereal farmers are receiving less than the cost of production.
Ulster Farmers' Union seeds and cereals chairman Robert Moore told FarmWeek that farmers growing barley are losing around £10 per tonne at current prices.
Mr Moore said: "Global bumper harvests in the past two years have driven down prices across the world, such is the oversupply.
"Most local cereal farmers will be producing grain at a loss or, if lucky, breaking even. Current price of barley is around £105 per tonne but it costs around £115 per tonne to produce.
"Wheat is almost breaking even at £110 per tonne and oats is also losing money. It takes roughly £112 per tonne to produce oats and just recently on my home farm I set up contracts to sell oats at £107 per tonne albeit with quality bonuses to be added," said Mr Moore.
The low cereal prices may be bad for cereal farmers but is a welcome boost for struggling dairy and livestock farmers.
Mr Moore said: "One man's gain is another man's loss. We would encourage those farmers needing to purchase cereals to get in touch directly with the growers to ensure best prices for both.
"To purchase grain at the mills would be adding on costs that are not needed. It would be beneficial for both buyer and seller to liaise directly," added Mr Moore.

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October 9th 2009
October 2nd 2009

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