EU releases grain intervention stocks
Up to 3m tonnes of grain are to be released from intervention stocks by the European Commission in an effort to curb rising feed costs to farmers.
The stock will be released on a phased basis from March to August next year, using a tendering system which has yet to be outlined.
There are close to 6m tonnes of grain held in intervention currently, including barley at 5.47m tonnes, 273,000t of soft wheat and 214,000t of maize.
The bulk of intervention stocks are held in Germany (1.68m t), France (929,000t), Finland (845,000t) and Hungary (727,000t).
Extra export tax demanded
The European feed industry has been calling for intervention stocks to be released onto the grain market since prices began to rise in July.
Some players in the feed industry have also called for EU grain exports to be taxed.
However, the Commission's view is that imposing export taxes would further fuel the market and drive grain prices higher in the short term.
The feed industry is also calling for the levy on sorghum imports into the EU to be removed.
In the 12 weeks since the European harvest began, imports of sorghum into Europe have reached 66,000t, compared to just 1,000t in 2009.
Source: Irish Independent
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