New Zeeland: Feed barley prices increase on high demand

Grain prices are firming for barley, with the bulk of the harvest yet to be brought in, The Press reported February 8.

Grain Growers 2008, the grain trading arm of the restored Barley Growers Society, has been monitoring the rise of prices on the world market.

The trading co-operative, which represents more than 250 growers, was set up last month to raise returns for grain farming. Grain will be marketed domestically, with the option of possibly selling overseas yet to be exercised.

Grain Growers 2008 marketing manager Russ Wakefield said little barley had been harvested, but reports had come through in the last few days that indicative barley prices had risen to $370 a tonne.

About a month ago, barley was selling for $310 to $320 a tonne.

Grain growers expect there will be strong demand for the grain from big dairying consortiums, chicken manufacturers, South Island feed meal outlets and big grain buyers from the North Island.

Less silage than in previous years may also result in more buying of feed grains. Wakefield said wet weather last week might delay early harvesting of crops and allow them to be ripened to their full potential.

"We have only got to the beginning of February and this is usually our big month. Once this weather clears and we get some heat and low humidity, we will be busy."

The trading co-operative has already confirmed barley contracts as far south as Southland.

08 February, 2008