November 24, 2008

Southern Australian farmers store grain to wait out bad prices


Australian Broadcasting Corporation Low grain prices are forcing farmers in South Australia to hoard their grain until the market improves.


An oversupply of feed barley domestically, the global financial crisis and a good harvest in the Ukraine and Russia are the reasons being blamed for the price falls for feed barley and wheat.


Farmers say these prices combined with high input costs will see them struggle to make a profit.


Richard Way a farmer from Port Vincent is taking the 'wait and see' approach hoping the market will improve.


Way said that he just received an SMS from his grain marketer and feed barley has just dropped $10 dollars a tonne, so there's no great incentive to sell at these low and dropping prices.


Steve another farmer from Loxton in the Riverland said that there will not be anymore young farmers left in South Australia if prices continue to be this low. It seems ABB and AWB make big profits and the farmer makes nothing anymore.

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