News last update:6 Aug 2012

More countries demand release of intervention grains

With escalating prices for cereals animal feed is becoming more expensive and more countries demand the European Commission to release intervention stocks to ease the market.

The Irish Grain and Feed Association (IGFA) has called for early action by the European Commission to tackle escalating prices of animal feed.
IGFA Director Deirdre Webb said both IGFA and the European feed association, Fefac, have been lobbying the Commission.
They want it to immediately release part of the 5 million tonnes of European Union intervention barley stocks and to remove levies on EU imports of feed ingredients.
Deirdre Webb said it is vital that Irish officials lobby for action at the next grain market management meeting in Brussels on coming Thursday.
High import levy
The levy on imported maize into Ireland at present is €9/tonne, which is €5/tonne higher than in Spain and Portugal. Sorghum carries an import levy of €23/tonne.
"It is unacceptable that the EU Council of Ministers should continue to support a system of levies that penalises Irish and EU livestock farmers while other countries are imposing export bans in order to protect their own consumers," she said.
Deirdre Webb said the dramatic increase in the price of wheat on the EU futures market has been fuelled by speculators and by international problems, such as the grain export ban imposed by the Russian government.
Wheat leads other price increases
While wheat has been the main driver, other feed materials have followed the wheat market upwards.
"Most users of compound feed ingredients are short of feed material supplies at present and will be forced to purchase at least some supplies at these elevated price levels.
"This will lead to price rises. Based on current price levels, we are looking at an increase of €40-€50 per tonne in the price of compound feed," she said.



Dick Ziggers

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