March 2, 2010

Low prices push New Zealand farmers out of grain growing

The grain and seed industry is losing further land to dairy conversions in the main production region, Canterbury, as New Zealand growers look for more profitable alternatives.

Mid-Canterbury grain growers' representative, David Clark, said crop prices offered to local growers are still significantly below imported grain prices. Imported milling wheat into North Island is fetching NZD380-NZD390 (US$264-US$271) a tonne, sorghum NZD360 (US$250) a tonne and feed wheat and feed barley are bringing in NZD350 (US$243) a tonne.

Local growers are being offered NZD200-NZD240 (US$139-US$167) a tonne for feed grains, which he said is not sustainable.

Clark has heard of 10 or 11 planned conversions this season, some on the best cropping soils in the country.

He said despite the late start and earlier hail damage in some areas, this year's grain harvest is expected to produce a good quality average yield, which should ensure a high acceptance rate by mills and malting companies.

Losses have been reported in Hawke's Bay because of an unusually wet summer there.