The continuing high-levels of worldwide cereal stocks are pushing down the demand for all grain, an expert has told the Scotsman.
Grain producers should not expect to see any real economic growth until the global cereal stocks have started to diminish and the prices are driven back up, warns Julian Bell of the Scottish Agricultural College.
His comments were made while speaking at an industry meeting in Carfraemill, where he told representatives he believed the volumes of wheat stocks would not decrease until 2011.
Although demand for all grain is increasing throughout the world market prices are still being depressed by the abundance of cereal and those who are unable to drop their prices are seeing their feed go to waste.
His forecast for 2010 wasn’t entirely negative though. The demand for barley and malt from the drinks industry is set to rise this year as the Whiskey trade remains seemingly unaffected by the recession.
However, Mr Bell said drinks manufacturers need to work with grain producers as often grain will not meet malting specifications, devaluing the excess to animal feed prices.
Until the supply and demand is on an equal par, he suggested livestock producers could find it cheaper to buy animal feed grain and straw.
Despite the expected fall in demand for cereal, the government recently pledged to step up Britain’s food production as part of its Food 2030 strategy in order to safeguard its future.
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