Heavier grain harvest forecast
Growers urged to maintain tight cost controls
Published:
ANALYSTS have increased their expectations for Europe’s grain harvest by 4.4million tonnes – because of good weather.
Strategie Grains believes total production could now climb 4.4million tonnes to 295.7million, a 15% rise on last year. The latest revision, issued yesterday, shows a 2.7 tonne rise in wheat production to 131.7million tonnes because of the favourable weather in Hungary, Romania, Bulgaria and Slovakia. Crops in Spain are also said to be doing better after rain.
But the increased production in southern and eastern Europe will be offset by significant yield reductions in northern Europe because of continuing dry conditions, particularly in Denmark.
The improved production outlook came as Clydesdale Bank senior agriculture manager Iain Clark told farmers at a meeting in Inverurie that margins could still be secured from grain, even with the huge increases in fertiliser and fuel prices.
He stressed the importance for growers to maintain tight cost control and adopt marketing strategies tailored to their own business.
Mr Clark said next season’s crop should be treated separately from the grain about to be harvested as current predictions are that ex-farm wheat prices will require to be about £130 a tonne for farmers to break even.
He urged farmers to question their production methods, and whether using their own machinery, hiring it through machinery rings or contracting out the entire operation was the best option. Drying costs also needed to be considered in response to higher fuel costs.
Russia yesterday said its wheat crop was expected to be at 20-year high of 49.4million tonnes.
