April 25, 2008

 

EU projects higher grain production over demand until 2014

 

 

The European Commission recently said that grain production in the EU would be rising until 2014, enough to answer the also growing demand.

 

The latest report from the commission also states that prospects for agricultural markets and incomes indicate an increase in grain growers' profits.

 

In 2010, EU grain production is estimated to reach 293.6 million tonnes, rising to 305 million tonnes by 2014.

 

Consumption is projected to grow at a more modest rate, and is expected to reach 272.9 million tonnes in 2010 and over 285 million tonnes in 2014.

 

The commission said that the EU will have end stocks of 56 million tonnes in 2014, against 40.4 million tonnes last year.

 

The rising production of grain is attributed to the reforms of the Common Agricultural Policy which made an ending of intervention buying for corn.

 

The EU has made more land available for grain production, the commission said.

 

Paris-based Strategie Grains forecasts that wheat production in the EU will be around 128 million tonnes, which is well up on the 111.6 million tonnes of last year.

 

Consumption of wheat is expected to be about 118 million tonnes, up on last year as livestock farmers switch from using maize.

 

Furthermore, production in the newer EU member states is expected to rise considerably as technical efficiency improves and farm sizes become larger.

 

The land in parts of Hungary and Poland are seen to be ideally suited to growing crops.