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The 2010-11 period was good for cereal producers in the European Union, according to the EU cereal farms report 2013 published by the European Commission. Based on Farm Accountancy Data Network data, the report reviews developments in costs of production, margins and incomes in EU cereal farms between 2004 and 2011, as well as estimates of production costs and gross margins for 2012.
Cereals account for one-quarter of the EU’s crop production value and for one-eighth of the total value of its agricultural products. Half of EU farms grow cereals, and cereal crops occupy one-third of the EU’s agricultural area. This report estimates the margins in cereal production and provides income indicators of EU farms specialised in cereal production. In general, the 2010-11 period was good for cereal producers in the European Union. Grain prices were very high, and yields about average. However, production costs climbed higher than ever. The gross margins obtained per hectare of cereals or per tonne of grain were much better than in their low point in 2009, but did not reach the high 2007 level because of increased production costs. Still, they were 36 % higher than the average for 2004-10. Estimates for 2012 show a further improvement in the profitability of cereal crops. Although margins improved for all cereal sectors, the margins for specific crops varied widely. Grain maize had the highest margins and the best recovery from the 2009 profitability lows. With 870 €/ha in 2011, the average EU gross margin for grain maize compared very favourably with the multiannual average (+87 %). However, in many Member States the margins improved less, because production costs rose significantly. Wheat margins stayed at around 400 €/ha in 2011, with margins for durum wheat a little lower than for soft wheat. Barley continued to have the lowest relative profitability despite the improvement, with the gross margin at 200 €/ha. In 2012, the margins for maize and common wheat increased further, while the profitability of producing durum wheat and barley stagnated or even fell.
Tuesday July 11, 2014/ European Commission/ European Union.
http://europa.eu/rapid
