Feed cost warning as EU cereal production falls

CEREALS production in Europe will fall – pushing up feed costs to livestock producers – unless market management measures are improved and new tool developed, says Copa-Cogeca.

The agricultural organisation’s representative body – of which the NFU is a member – has welcomed the Spanish presidency’s initiative to launch a debate on the future CAP among EU farm ministers, in the wake of what it says is “the drastic EU cereals market situation.”

Speaking after a meeting with Spanish farm minister Elena Espinosa, Cogeca president Paolo Bruni, said: “There is currently a serious imbalance in the EU cereals sector.

“EU grain prices have plummeted by 45 per cent over the past two years, while production costs have risen sharply by 63 per cent over the period 2004 to 2009.

“Without action, EU cereal production will fall in 2010-11, and as cereal stocks are already low, there could be a new hike in cereal and feed prices in 2011. This would have a devastating impact on EU livestock farmers.”

26 February 2010