Brussels, 24/06/2010 (Agence Europe) - In a press release issued on Wednesday 23 June, COPA (Committee of Professional Agricultural Organisations) and COGECA (General Confederation of Agricultural Cooperatives) complain about the current low prices of cereals, which barely meet production costs, and express fears of a reduction in cereal production next year. They say that, in 2010, more than 1 million hectares were not cultivated under arable crops.
To avoid low prices and price volatility, the agricultural organisations are calling on buyers in the supply chain to accept that they are paying very low prices for raw materials. “We cannot continue with wheat prices at €102, €103, €104 on average over the year. It's not sustainable,” COPA-COGECA Director Arnaud Petit told EUROPE. COPA-COGECA is also calling on the European Commission not to grant too many concessions to the MERCOSUR countries in discussions on trade liberalisation. With 60% of cereals going to feed for EU white (in particular) and red meat production, any EU opening of its doors to meat (particularly poultry) from the MERCOSUR countries could result in a drop in European cereal production.
COPA-COGECA forecasts for 2010-2011 indicate a 1.3% fall in cereal production in the EU, with a 7.4% reduction in barley production and a 3.3% increase in soft wheat (http: //http://www.copa-cogeca.eu/img/user/file/ALL_CER2010.pdf ). (L.C./transl.rt)