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 04 nov 2016 17:43 

Copa & Cogecas’ Cereals and Oilseeds working parties confirm bad 2016 EU market situation


Copa & Cogecas’ Cereals and Oilseeds working parties confirm bad 2016 EU market situation but prospects promising as long as sufficient supply plant protection products available

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Copa & Cogecas’ Cereals and Oilseeds working party confirmed today the bad situation felt by many EU arable farmers in 2016 which saw EU-28 wheat production fall by 10% this year and rapeseed by 9.2%, compared to 2015, and underlined the need for a sufficient supply of plant protection products (PPPs) to ensure a viable sector in the future.

Speaking at the meeting, Mike Hambly Copa & Cogeca Vice-Chairman of the working party said “We have seen lower production in most Member States in the EU arable crops sector this year. Some regions have been drastically impacted by the extreme weather events  which resulted in poor yields, down by up to 50% in some countries. The pattern nevertheless varied slightly across the EU, with Hungary recording a good cereals and rapeseed harvest this year and France being particularly badly hit with a sharp drop of 30% seen in its wheat production and all are impacted by 3 years of low price levels below production costs”.

“Many complained of poor weather conditions and of cabbage stem flea beetle attacks hitting their rapeseed crop mainly due to the suspension of neonicotinoid seed treatments. Farmers will not take the risk of sowing rapeseed if they do not have a good supply of PPPs at their disposal. They were also concerned about not being able to use effective PPPs on Ecological Focus Areas (EFAs) especially since these crops provide many environmental benefits, helping to ensure biodiversity and food for the declining bee population”, Hambly warned.

Grain prices are meanwhile down whilst EU rapeseed prices have seen a rise. Prospects for 2017 look more promising for cereals with sowing conditions quite good in some member states. According to Copa & Cogeca estimates, EU-28 grain production is estimated to rise by 4.2% in 2017, compared to 2016. For EU-28 oilseeds production, a slight 0.8% rise is estimated. But how the harvest pans out will depend a lot on climatic conditions and also if farmers have enough PPPs at their disposal to fight pests and diseases. Copa & Cogeca have also sent a letter to the EU Commission calling for direct emergency support to offset cereal farmers severe cash flow problems.

 



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