Ireland: Mallow beet factory closure set to hit price of barley
The price of barley next autumn is already being talked down following the announcement last week that Mallow beet factory will close in May, Irish Independent communicated March 1.
Grain merchants are saying they will be sold out of spring barley seed in the next few days. They are also reporting strong orders for spring oilseed rape. Tillage farmers now fear the market will be swamped with spring barley next August as it is one of the few crops that beet growers can still sow this late.
Head of Tillage research in Teagasc Oak Park, Jimmy Burke, said it was very unfortunate that the decision to close the factory had been made so late.
"Tillage farmers have very few options for their land this late in the sowing season. If the decision had been made earlier, farmers would have been better placed for making decisions on what crops to sow."
Mr Burke said it would be a bad decision for beet growers to opt for sowing all their beet ground with spring barley. "This would place huge downward pressure on spring barley prices in the August. While it is an ideal time to sow spring barley it is not the ideal option."
He said growers are expressing some interest in alternative crops such as beans and peas. "Farmers need a definite market for these crops before they put them into the ground and even with contracts from compounders, the margin is still no way near what the farmers would have received for their beet crop."
Mr Burke added beet growers have options now with the decoupled payment. He said the ending of sugar beet growing in this country is sure to collapse the conacre market.
Beet growers are now focusing their attentions on the €145m compensation package. Some details of the compensation are expected within a few weeks but with both Greencore and most growers claiming they are entitled to the majority, a long and heated debate is set to ensue.
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