Andy Doyle’s article in the Irish Farmers Journal (16/03/19) highlighted the difficult position which many Irish grain growers and merchants find themselves in March ’19. Imported maize, back in September/October 2018, when feeds were being formulated for the winter months was good value against the relatively high prices paid for native barley & wheat in Harvest ’18. Accordingly maize has displaced native cereals in much of the animal feeds produced in Ireland this season. Despite wheat and barley prices falling since the New Year, maize continues to be value, and is flooding into feeds. Cheap maize coupled with feed sales nationally being well back so far this season leaves grain growers and merchants, with grain still to sell, sitting in their stores. If this pattern continues it is likely that merchants will be carrying grain into Harvest ’19.

Drummonds is a relatively large buyer of locally-grown grains, pulses and oilseed rape in the north-east and is also a manufacturer of ruminant coarse rations. GM free native cereals & field beans form the backbone of our high performance animal feeds. Much of the feeds we compete with in the marketplace contain largely high levels of imported (GM) maize and imported protein feeds.

While fully accepting that Ireland’s competitive advantage is our ability to grow grass; and that farmers must maximise the inclusion of grass in the diet of their dairy cows, beef cattle & sheep; there is a requirement for supplementing with concentrate feeds in most of our animal production systems. Surely concentrates containing feed ingredients which are produced locally; produced to the highest standards; and fully traceable; should fit neatly with the grass-fed image under which ‘Ireland Inc’ markets our food exports ? Rather than marketing Kerrygold butter or Irish beef as ‘purely’ being grass-fed in various export markets should we not proudly be telling the full & true story that concentrates form part of the animal’s diet. If this concentrate contains Irish grown cereals and field beans (and possibly even soyabean into the future) – surely this would add to the authenticity of our Irish food exports ?      

The forward prices for Harvest 19 are currently around €180 - €185/tonne for Feed Wheat and
€170 - €175/tonne for Feed Barley. Please note that these indicative forward prices are for dried grain and not for green grain. Irish grain merchants have supported grain prices for the last 3 years – paying above the imported price - but the reality is that if they continue to ‘take a bath’ selling grain over the coming months it will be extremely difficult for them to add much support to grain prices for
Harvest ‘19.

Irish grain growers need to achieve good prices, but to remain sustainable and to have a local market outlet, Irish grain needs to be at a price where it actively competes with imported maize. As farmers know only too well, every season is different & brings its own challenges. Wheat and barley going forward are going to have to buy back demand from maize in order to reclaim their inclusion in Ireland’s animal feeds.  

How do we get the balance right ?

Like all initiatives we need to start taking action at a local level. Ireland’s tillage farmers, many of whom also have a livestock enterprise, need to be feeding rations based on locally-grown cereals & encouraging their livestock farming neighbours to do likewise. From a selfish Irish grain merchants perspective we would like to see farmers buying feeds demanding a proven & reasonable inclusion of native ingredients.

It is fact that Ireland’s tillage farmers cannot produce enough grains and in particular protein feeds to meet the overall national demand for manufactured animal feeds - but we can make a significant contribution. Should we not be supporting our own Irish tillage farmers first by feeding the quality products they produce ? It was largely Irish tillage farmers who came to the aid of our dairy, beef and sheep farmers in the prolonged dry spell we experienced from May through to September 2018 by growing catch crops which could be grazed/ensiled; by sowing short rotation grasses; by selling wholecrop cereal crops and by planting more acres of forage maize. Are our memories that short ?

The different sectors of Irish agriculture - dairy, beef, sheep, pigs, poultry & tillage - need to pull together in the one direction to help create a socially, environmentally, and all important, economically sustainable business model for the future. Can or how does Irish agriculture or ‘Ireland Inc’ achieve a level of joined up thinking which will enable all sectors to make a sustainable return ?

Ireland markets our food and drink exports based on a green grass-fed, environmentally-sound & fully traceable image. Does the marketing message reflect what we are doing on the ground ?

Michael Slattery

Managing Director

Drummonds