Euro threat to cereal farmers


15 January 1999


Euro threat to cereal farmers


INTERVENTION prices would have varied by as much as £2.45/t if the Euro had been in place in November and December, an economist has calculated.

The introduction of the Euro on 1 January, and simultaneous abolition of the Green Pound leaves cereal producers exposed to the exchange rate movements.

Gerald Mason, the economist with the Home Grown Cereals Authority who made the calculation said there was a danger of substantial trading losses in the European Commissions decision to make intervention payments at the rate applying on the day prior to delivery.

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