Green Pages Feed Trade Topics from the Island of Ireland


MCGUINNESS TELLS IGFA ON BREXIT: “PREPARE FOR CHANGE” First Vice-President of the European Parliament, Mairead McGuinness MEP, joined the Irish Grain and Feed Association (IGFA) Feed Committee recently to discuss concerns about the impact of Brexit on the sector and the progress of negotiations between the EU and the UK. With the continued uncertainty and so many details still unclear, feed businesses across the country are struggling to plan and prepare for the potential impacts of Brexit. Ms McGuinness said: “Reaching a trade agreement of any real substance will be a huge challenge and time is not on our side. The EU is continuing to move things forward in good faith but we have to prepare for all outcomes. One thing is certain: there will be change on 1st January 2021, as the UK leaves the single market and customs union.” Acknowledging the impact on businesses in Ireland she added:


“The uncertainty is putting pressure on a range of businesses and it is not always easy to find the time and resources to do the scenario planning necessary for the changes that might come. However, we all must aim to prepare as much as possible to limit negative economic consequences. “The European Commission has published a detailed communication


on changes that will happen regardless of the outcome of negotiations, alongside over 80 sector-specific notices: I advise all businesses to study these documents carefully as they make preparations.” Chairman of the IGFA Feed Committee John Coleman said: “We


are facing into another very important period on Brexit and our members want to ensure that their businesses continue to provide essential and professional services to their customers. The progress and pace of the discussions between the UK and the EU is a huge concern but our industry will need to adapt and manage trading activities in time for future changes. “Many of our members trade in Northern Ireland and throughout


the UK. This trade has been frictionless and our customers rely on that efficiency. We are therefore continuing to seek clarity on a range of scenarios and talk to government about the specific challenges for our sector”. Ms McGuinness also discussed other priorities for all members of


the food chain, noting the importance of delivering on environmental goals. She commented: “Tackling climate change and improving sustainability is top of the agenda for the EU and for the European Parliament. Feed companies and the whole farming sector will be asked to deliver more on these issues, which will also be a vital component of future trade agreements.”


GRAIN PRICE SURGE – BOOSTING ARABLE PROSPECTS IN NORTHERN IRELAND According to Northern Ireland Grain Trade Association (NIGTA) chief executive Robin Irvine, grain growers in the province will have been pleased to see the rapid increase in cereal prices over recent weeks.


PAGE 24 NOVEMBER/DECEMBER 2020 FEED COMPOUNDER He commented: “Since the start of harvest back in August, barley


and wheat prices have gained over £20 per tonne as global grain markets have surged in response to massive Chinese purchasing and increased buying activity from the investment funds. The good news for growers brings a price warning for the livestock sector however and points to more expensive feedstuffs in the coming winter.” Robin added: “The re-emergence of Chinese demand has been the


big driver in the global market. They are rebuilding their stocks. Having suffered a major reduction in their pig herd due to African Swine Flu in the last couple of years, livestock numbers are now recovering rapidly, with new intensive and professionally managed pig units replacing the backyard herds. “Having effectively cleaned out the Brazilian crop, China has


switched its attention to North America and has already purchased 60 million tonnes of US corn and soya beans in the current year. The US investment funds responded to this activity in the market by correcting their short positions; in other words buying up contracts for around 100 million tonnes of grain and proteins to go long to an extent we have not seen in several years.” The NIGTA representative confirmed that this activity has driven


up the price of maize by £35 to £40 per tonne for local buyers. He continued: “Barley is now attracting more interest as the best value cereal for feed producers. Wheat is holding its position as the most expensive grain as the European crop has come up 20 million tonnes short of the 2019 harvest. Sellers of feed wheat are hard to find, as our local traders have to cast their net ever wider to find available supplies.” According to Robin, protein supplies are also under pressure


as the US reports reducing soya stocks following the sales to China. He said: “Traders are anxiously watching the growing crop in South America amid concerns about a La Nina weather event which could impact yields or delay harvest in that region.” Argentina is the principal supplier of soya meal (as distinct from


beans, which have to be crushed to produce the meal used in animal feed) and the UK and Ireland are dependent on shipments from this region.


The NIGTA chief executive continued: “The perilous state of the


Argentinean economy has effectively stalled the movement of beans from the farms to the crushing plants. Punitive export taxes, complex trading and currency regulations and the plunging value of the peso combine to discourage sales and farmers are happier to hold their crop in store. The result is local soyameal prices soaring by up to £80 per tonne in recent weeks.” He concluded: “The impact on feed prices will be felt over the


coming months and will be mitigated to some extent by forward purchase contracts, particularly in the first half of the winter. Unfortunately the absence of any clarity around the application of tariffs after the end on the Brexit transition period has meant that many of these contracts do not extend beyond 31st


December.”


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