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EU harvest 'good' but costs cloud outlook

14 Dec 2011

Europe’s cereal harvest was ‘good’ this year despite some quality concerns, according to NFU crops board chairman Ian Backhouse.  

Ian BackhouseBut speaking in his role as chairman of the Copa-Cogeca Cereals Working Party, which brings together union representatives from all 27 EU member states, Mr Backhouse said that farmers continued to be squeezed by high input costs forced upwards by a 'monopolistic' fertiliser market.

He said: “Figures confirm this years’ EU cereals production is in the five-year average, totalling some 283 million tonnes, but there were some concerns about quality which varied across member states as a result of the poor weather conditions.”

Copa-Cogeca estimates for the 2010/11 and 2012/13 marketing year were released yesterday. They revealed a ‘stable’ forecast for next year.

“Sowing area is predicted to total 55.75 million hectares but this will not reach the levels of 2008,” added Mr Backhouse.

“For maize, this years’ good harvest has encouraged farmers to maintain the same sowing area for 2012. The market balance is also expected to continue to be tight”.

Mr Backhouse warned that input prices would continue to squeeze EU producers and called for more transparency in the fertiliser market.

“Farmers are continuing to be squeezed by high input costs, especially high fertiliser prices which are near the record highs of 2009, even though there was a relaxation of the pressure on gas prices.

“Copa-Cogeca is consequently calling for more transparency on the fertiliser market and believes more competition is required in this monopolistic world market,” he said.

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Cereals 2012