Brussels, 08/02/2016 (Agence Europe) - New Copa-Cogeca figures released on Friday 5 February show good cereals plantings in the EU in 2016 due to good weather conditions. Grain prices, however, remain low, the agriculture organisations note and EU rapeseed area down partly due to neonicotinoid seed treatment ban.
The cereals plantings figures show production up 1.4% in 2016, to 309 million tonnes, compared to 304 million tonnes last year. Grain prices remain low, however, leaving farmers with serious cash flow problems, Copa-Cogeca says. These cash-flow problems could deteriorate even further with oversupply on the market and farmers having to release cereals onto the market to buy inputs to improve the quality of the new crops. “Grain prices are rock-bottom and do not even cover production costs, leaving farmers with serious cash flow problems and potential increase of fallow land”, says a Copa-Cogeca press release.
The EU oilseeds sowing area declined by 2.6% in 2016. A sharp drop of 14% in the area planted has been seen in the United Kingdom, mainly as a result of the neonicotinoid seed treatment ban. “The sector is in serious danger and the ban must be removed as long as no credible alternatives exist”, in the view of Copa-Cogeca. The news in the protein crop sector, however, is good. (Original version in French by Lionel Changeur)