NFU Combinable Crops Chairman Ian Backhouse has delivered his sector report to NFU Council.
Mr Backhouse had recently attended various industry events in London and Brussels which looked at the trends of grain production, global supply and demand.
He said: "The bulk of increased demand comes from the animal feed sector, but the concern is where the trends are going in the longer term.
"Europe is reliant on the import of proteins. Grain price volatility and Pillar 1 SFP is important. It was agreed with French and German counterparts that this underlies farmers' exposure to market price and volatility.
"Recent EU figures have shown an overall decline in the area of crops grown in the EU - so where is the extra production going to come from?"
On mycotoxins, Mr Backhouse said the weather had been beneficial with samples showing practically nil levels.
There are reports that Germany is short of OSR - and they are looking to the UK as a possible supplier, however it was down to the Commission to enable UK OSR to be approved for export.
Find out more detail on the work carried in the crops sector on pages 7-9 in the Current Situation report here.
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