By FWi staff
FARMERS stand to lose out on intervention barley because deliveries will only be possible after a Green Pound revaluation, the Home-Grown Cereals Authority believes.
The trade believes that the massive backlog of barley awaiting intervention means many farmers will only be able to make deliveries after a revaluation of the Green Pound in early May.
The Pound ended trading yesterday at a nine-year-high of DM3.06 against the Deutschmark. At current levels, a Green Pound revaluation in early May “now seems inevitable,” HGCA economists say.
But because farmers are paid for intervention barley on delivery, rather than when they offer the crop for intervention, many producers face a loss of £2.20/ tonne on the May intervention price of £87.79.
Intervention has proved the most profitable outlet for most UK barley this year. More than a million tonnes has been offered, but only about 250,000 tonnes has been physically delivered.