Bumper Season for Barley

16 July 2007
Bumper Season for Barley

North Island barley growers are predicting a bumper season after two years of low prices and poor yields, said Grains Council representative for the lower North Island Hew Dalrymple.

“Demand for barley is up for two reasons. It is predominately due to Fonterra’s forecast dairy payout but also because internationally food prices are on the rise. Overseas grain prices are up and demand is creating a sustained high for world barley, wheat and maize.

“We are predicting that barley grown in the South Island will stay in the South Island. South Island dairy farmers will be wanting to buy greater volumes of barley to increase production due to high milk solid prices.

That means less supply of barley in the North Island, so buyers such as brewers and millers as well as buyers of feed for pigs, poultry, horse, deer and dairying will be squeezed.

Mr Dalrymple said that prices of Australian barley were a strong indicator that New Zealand barley prices would be strong this season.

“New Zealand growers were last year getting an average of NZ$270/tonne for barley. New season barley at the Port of Adelaide is selling at NZ$255/tonne, compared with NZ$180/tonne this time last year.

Adding import costs, Australian barley is selling now in New Zealand for at least $400/tonne.

A higher price of barley obviously benefits barley growers, but it also has a positive spin off for grain growers.

“New Zealand grain is going to be worth $400/tonne in the new season,” he said.

“In addition to this there is little surplus barley stock in Australia due to drought, and they have already committed huge amounts of barley to Arab states and Asia.

“With barley contracts coming out soon, North Island farmers should be looking for approximately $400/tonne.

“The improvement in price is going to mean growers can reinvest in their businesses and ensure sustainability in the arable industry,” said Mr Dalrymple.

ENDS

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