Barley growers told to help set prices
Barley growers told to help set prices
BARLEY growers need to take more control of the price they receive for their crop and should push for fixed premium or feed-plus contracts.
Simon Barry, chief executive of Highland Grain and malting barley expert with the newly created United Cereals of Scotland (UCOS) marketing group, says satisfying the commercial needs of both the farmer and the customer is almost impossible.
Consider customers needs
"So it is necessary to take more control of pricing if you can," he told delegates at an HGCA-organised malting barley seminar in Inverness last week.
"At the same time, of course, we have to consider the commercial requirements of the customer, and it is for this reason that we would like customers to consider a fixed premium on a floating base, or feed price.
Manage the risk
"This enables both parties to manage their risk, but the premium reflects the commitment on both sides, as well as the yield sacrifice made by the grower in producing a low nitrogen crop."
Mr Barry adds that UCOS wanted to see more fixed price or "feed plus" contracts this year.
"Spot selling has become very risky and is perhaps not to be advised for a high proportion of the crop when there is potential this year for oversupply." *