Grain Committee Report
Achievements and Work Done
Headline price obtained for 2011 malting barley crop
The new formula agreed between the committee and Boortmalt delivered €208/t for green malting barley exclusive of vat. This equates to a premium of €50/t over feed barley. The creation of an opportunity to forward sell 25% of the crop earlier in the spring was instrumental in bringing Diageo on board.
Export opportunity for malting underpinned feed grain price
The deal of €170/t for surplus malting barley forced competitors to up their game for feed grains. An additional 30,000t of malting barley was purchased this season.
Upfront pricing on ag-chems forced suppliers to cut margins
Talks with Boortmalt saw the introduction of up front pricing mechanism entailing direct rebates to farmers for ag-chemical purchases which forced competitors and suppliers to cut margins.
Forward selling push gains momentum
The push by the committee over the last few years to develop a forward selling mechanism sawthe trade move to facilitate the forward sale of close on 40% of the 2011 crop easing downward pressure on harvest prices.
Price campaign delivers for green growers
The 2011 campaign delivered €155 to €160/t for many traditional green feed barley growers with €10/t of a premium for feed wheat. Fortunately the benchmark price was set before the post harvest collapse in dried grain prices, which have fallen by €10 to €15/t.
Farm-to-farm trade boosts competition
The publication and distribution of over 80,000 technical feed leaflets pre-harvest outlining and promoting on farm storage and processing options was key to maximising farm-to-farm trade. In addition it introduced much needed competition at a critical juncture just as the trade realised that a large harvest of 2.4mt was looming.
Grain, feed ingredient and fuel price survey forces trade to cut margins
The bimonthly publication of the Grain, feed ingredient and fuel price update keeps growers in tune with market developments.
Input price surveys empower growers
Publication of seed grain and agri-chemical price surveys by the IFA National Grain Committee in the national media has empowered growers to bargain for better-input prices. The bi-monthly publication of wholesale feed ingredient prices is also forcing down the cost of compound feeds
Priorities for 2012
Ensure that grain farmers obtain a fair deal under CAP
Expand the malting export business
Talks are ongoing with the malsters to expand the home and export malting business.
Increased opportunity for forward selling malting
A proposal to increase the opportunity for forward selling to 40% of the contract has been taken up by Boortmalt with Diageo.
Grain marketing options and price risk management strategies
Grain farmers are not speculators. The committee is working with key players in the trade to ensure that more farmers are given a choice of pricing options for the coming season. A number of speakers are being lined up to talk to growers on price risk management strategies in January / February.
Surveys expanded to bring Irish input costs further in line
Irish input costs are now more in line with our competitors. The successful fertiliser campaign will be repeated in 2012. The number of surveys will be expanded to other products as the season progresses.
Continued development of farm-to-farm trade critical
IFA will continue to vigorously promote and develop opportunities for on farm processing and storage options allied with farm-to-farm trade as a means of boosting grain growers’ incomes while reducing livestock farmers feed costs for the coming season.
Pesticide regulations
Talks are ongoing with the PCS to ensure that any new pesticide regulations introduced will not be onerous on farmers.
Trailer / axle weights
Proposals from the RSA are significantly below comparative weights on the continent. The committee is working with the Environment committee in talks with the RSA to ensure that the current proposals are amended to reflect the increased load carrying of modern day tractors and trailers.
Ends
Noel DelanyFintan Conway
ChairmanExecutive Secretary
IFA National Grain CommitteeIFA National Grain Committee