UK: Barley grower facing the question: “When to sell”

There are still odd pockets of grain to be combined in Scotland, but the vast bulk of the harvest is over, Business Scotsman reported September 18.

The question now facing those farmers who have not sold their entire crop on forward contracts is the tricky one of when to hit the market. Spot malting barley of the highest quality is touching £200 per tonne, which is a record level and way above the £80 per tonne similar barley was making last September.

The malting trade appears desperate to buy barley and the general advice is certainly not to sell too quickly, though anything in the £180-£200 per tonne range has to be considered attractive. These unprecedented values for barley will eventually have to be reflected by distillers and brewers in what they charge for their drinks.

Meanwhile, next week the European Commission is expected to approve the abolition of compulsory set-aside. It is estimated that 3.8 million hectares is currently in set-aside throughout the EU, with 900,000 hectares, mostly in France and Germany, used for non-food crops. Virtually all of the set-aside is likely to be used to grow arable crops. However, much of the land in set-aside is of moderate quality and its return to production may not have a huge effect on the overall level of production.

But the Agricultural Trade Industries Confederation (AIC), the UK trade organisation, says the ending of set-aside should be welcomed.

Paul Rooke, the head of policy at the AIC, said: "Failure to act now would expose the EU to potentially serious risks in the event of a further poor harvest in 2008. Despite claims made by some organisations, we are confident that farmers' response will be measured, ensuring a reduced risk of crop shortages without compromising the environment.

"We trust that the government will support the European Commission's proposals and make sure it is implemented fully and as soon as possible."

19 September, 2007