A good harvest but growers are feeling the price pinch

GALWAY grain growers are enjoying a solid harvest return with very good quality corn mainly due to the July heatwave – but they are facing up to a price drop of €60 per tonne as compared to last year’s prices.

Approximately 6,000 acres of corn – mostly barley – are being harvested in Galway and if the ‘reasonably dry’ conditions continue into next week, nearly all of the cutting could be completed by the second week of September.

Yields have been described as being ‘average to good’ with the mixture of summer sun, and moisture in the ground, making up for the harshness of the spring season.

Barley prices are currently averaging out at around €140 per tonne – this time last year the price stood at €200 per tonne – although there are some hopes of a recovery over the next month to six weeks.

One bonus for ‘the corn men’ is the strong demand for straw with round bales making €18 to €200 ‘off the field’ while small square bales are making from €2.50 to €3.

The large scale ESB sourcing of straw for the generation of electricity at their plant in Edenderry has also given a major lift to straw prices.

However one matter of concern for farmers is the massive price discrepancy between what they are being paid by the merchants as compared to the price of purchasing rolled oats or barley from the grain stores.

The price of rolled barley varies between €310 to €360 a tonne, representing a mark-up of over 150% in cases – some farmers with storage space are buying directly from other farmers at a price of about €180 per tonne. 

Co. Galway IFA Grain Committee Chairman, Eamonn Burke, told the Farming Tribune, that by early this week, he estimated about 30 to 40% of crops in the county had been harvested.

He said that the rate of cutting had been restricted by some ‘very slow’ drying days, but overall ground conditions were excellent, and good progress was being made with the harvesting.

“We are probably looking at yields that are a little above the average while the quality of the corn is very good.

“The main problem for growers, and especially for those who have rented land, is that a price of €140 a tonne is a long way off the financial break even mark,” said Eamonn Burke.

He said that while there were some tentative signs of a price recovery over the next six weeks or so, many grain growers were committed to a system of delivery of corn from the fields to the merchants’ yards.

Mr. Burke said that once grain farmers paid over the €100 per acre for rented land, they were leaving themselves open to a serious loss making situation, especially in a year when grain prices dropped significantly.