Wheat quality forces CZAV to make concessions in sales

The sales year 2016 was a year with few price fluctuations for grains. At the southwestern cooperative CVAV, this leads to a feed wheat price of 145 euros per tonne.

Milling and spring wheat can put 5 euros more per tonne in their pocket. For baking wheat, CZAV achieved a pool price of 152 euros, including protein surcharge, with an HL weight of at least 76 kilos/hl and a protein percentage from 12,5 percent. For the sustainability project Tritiko, the cultivation of which is regionally determined, 160 euros per tonne is paid. All prices are exclusive of VAT. 

Fusarium short wheat
What was striking about the 2016 harvest were the large differences, both in yield and quality. 'Fusarium infestation during flowering, followed by a dark June month was the cause of this', clarifies CZAV† This was the case in large parts of Europe, especially in the northern part of France, Belgium, the Netherlands and parts of Germany. Fortunately, the fusarium attack resulted in only limited DON levels in the harvest product. However, this damage had a major influence on the kilo yield and the hectolitre weights.

Additional costs
According to the cooperative, the hl weights in particular varied widely between different parties. The trading standard for milling wheat is 76 kilos. This was not possible in all cases this year. Concessions have also been made in sales. Additional costs were also incurred to deliver batches homogeneously. This results in hl weight discounts on the settlement. For milling wheat below 74 and feed wheat below 70.

Expectations harvest 2017
We have to wait for new impetus for the 2017 harvest, says CZAV. The weather has a major influence on this. If no problems arise in the major production areas, the buying and selling organization expects the wheat price to continue smoothly. The current weather conditions in Europe are not yet showing any impact on the market.

Weather affects barley quality
In recent years, the vast majority of barley consists of winter barley. The weather conditions have had an even more influence on the quality of the barley than with wheat, according to CZAV. In the case of winter barley, this was expressed in particular in low hl weights, the trade standard 62 was often not met. As with wheat, this has led to hl weight discounts on delivery. Lots with an hl lower than 61 are corrected with a hl weight discount on the settlement. 

In the case of spring barley, the circumstances have led in particular to insufficient germination capacity to sell this barley as malting barley. All delivered summer barley from the 2016 harvest is therefore settled at the feed barley price. 

The cooperative considers the circumstances slightly more favorable for the 2017 harvest. 'If it turns out that the suitable summer barley varieties produce brewable barley, we will also pay for it as such.' It is possible that due to the current growing conditions, the chances of malting barley will increase again.

For the supplementary payment, this means that CZAV will pay out 7 million euros. 

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