Grain sector on brink of 'collapse' as cereal area falls 100,000ac
Published 09/08/2016 | 02:30
Government and grain merchants have been warned that the grain sector is on the verge of collapse as the combination of poor yields and prices looks set to wipe €100m off cereal grower incomes this year.
Cereal growers are being instructed by the IFA to reject a forward price from Glanbia, who were told by the farm organisation to "get real" this week.
Glanbia have offered €162/t for dried wheat and €152/t for dried barley. The deal, which is for payment in November, was communicated to growers via text message over the last few days.
However, IFA grain chairman, Liam Dunne, said the proposed payment did not reflect recent developments in global cereals markets and was totally unacceptable.
"Glanbia need to get real on grain prices, be supportive of growers, and back this industry or else we won't have one," Mr Dunne insisted.
He said there were clear indications that the collapse in French grain yields would have a greater impact on world markets than previously believed.
Mr Dunne predicted that global markets would bounce back when the implications of the poor harvest in the France and Western Europe generally were fully appreciated.
The French cereal harvest is estimated to be back by 16m tonnes, with private analysts predicting a 26pc drop in wheat production from last year.