September 23, 2009

Mutinous farmers in Ireland threatened to close their agri-trading accounts with some of the biggest grain merchants, for their grain prices are EUR5/tonne-EUR10/tonne (US$7.4/tonne-US$14.8/tonne) lower than the smallest merchants.

A turbulent week for grain farmers has seen Wexford Farmers Co-op offer a barley price of EUR90/tonne (US$133.3/tonne) and a wheat price of EUR96/tonne (US$142.2/tonne) excluding VAT.

Bandon and Barryroe co-ops have offered EUR90/tonne (US$133.3/tonne) on account for barley and EUR95/tonne (US$140.7/tonne) for wheat, VAT exclusive. However, both co-ops have indicated that there may be a further review of prices.

Dairygold issued an on-account price of EUR80/tonne (US$118.5/tonne) for barley and wheat and EUR70/tonne (US$103.7/tonne) for oats on Thursday (Sept 17), excluding VAT.

The price was just a down payment and did not indicate the co-ops final price for grain this harvest, said Gerry O'Sullivan, Dairygold's grain operations manager.

There is mounting anger among grain growers that big merchants with major processing facilities have offered lower prices than small operators with no processing capabilities.

Several large growers, including one with a trading account worth close to EUR0.25 million (US$0.37 million), have threatened to stop dealing with Glanbia completely because of its EUR85/tonne (US$125.9/tonne) price.

Unless Dairygold issues a satisfactory top-up to its EUR80/tonne (US$118.5/tonne) on-account price, similar action is being considered by its suppliers.

Suppliers to Liffey Mills and Bretts are still waiting for some indication of grain price.

Meanwhile, the IFA is continuing its negotiations on a malting barley price with Greencore Malt. IFA grain chairman Colum McDonnell is seeking a malting barley price of EUR145/tonne (US$214.8/tonne), EUR25/tonne (US$37/tonne) more than the current offer on the table from Greencore.

US$1 = EUR0.67508 (Sep 23)