Flexible marketing key to survival – HGCA

By Olivia Cooper

INTERNATIONAL affairs will dominate UK cereal markets as price support is removed, but flexible marketing can overcome that volatility.

This was the main message at the Home-Grown Cereal Authoritys market outlook conference Trading Out of a Crisis in London last week.

“There is no easy way to make money,” said HGCA senior economist Gerald Mason. “But attention to detail and good planning are key requirements.”

Speaking on UK prospects, he predicted a record UK wheat harvest next year, but said that although crop size was still important, it would no longer dictate prices in a world market.

The imminent WTO talks in Qatar promise a level playing field, but Prof David Blandford, head of agricultural economics at Pennsylvania State University, is not so sure.

“The US government has a poor record when it comes to agricultural reform.”

This was illustrated last week when the US government passed a major agricultural bill authorising $50 billion (34bn) to be made in crop deficiency payments over the next 10 years.

Prof Alan Buckwell of the Country Land and Business Association sees problems closer to home. “The consumer asks for top-quality, environmentally friendly food, but at the cheapest prices.

“This is not sustainable, and the industry needs to ascertain clearer public support for one preference over another.”

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