Over 100,000t of old crop barley still in stores
Forward prices for this year's barley crop are coming under pressure from the large amounts of old crop barley remaining in storage.
An estimated 100,000 tonnes of old crop barley remains in merchant and farmer stores across the country.
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The barley was held by growers last autumn as grain prices rose sharply post harvest. However, the market has collapsed since January due to a combination of reduced feed demand and an increased supply of cheaper imported maize.
Growers now fear that the stored barley stocks, which equate to around 5pc of last year's 1.7m-tonne cereal harvest, is putting downward pressure on forward prices for this year's crop.
Glanbia's forward price for barley, issued last week, was €145 per tonne for green barley. This is back €15 per tonne from the €160 per tonne quoted by Glanbia last November.
And John Bergin of feed importers RH Hall maintains that new-crop grain prices have the potential to fall further based on current market information.
IFA grain chairman Mark Browne said cereal growers were furious over the continued failure of many compounders to use local barley in feed rations.
"Many growers are left with stores full of barley due to the importation of feed ingredients," Mr Browne said.