The fact that the Northern Netherlands had a slightly better wheat harvest (than the south) and that a completely new sales branch was added is positive for Pars Graanhandel in Sint Jacobiparochie. This brings the net price for feed wheat in the long pool for the 2016 harvest to 152 euros per tonne.
This concerns the pool without advance payment and excludes VAT. The collection costs of 7 euros and storage costs of 8,90 euros have also been deducted from this. The long feed wheat pool, with advance payment, amounts to a net amount of 148 euros per tonne. For milling wheat (with advance payment) 3 euros more is paid. Barley growers may credit 133 euros net to their account, from the long pool with advance payment.
Pars speaks of a reasonable quality of the wheat. The hectoliter weight was approximately between 72 and 77 and the moisture content was 16 percent. 'The quality was slightly higher here in the north than in the south. That was mainly the result of the many showers, but it was not a top yield here either.'
Pars estimates that there was 15 to 20 percent less wheat across the board. 'Where the southern wheat was mediocre in quality, we were able to meet the conditions neatly. We were also able to sell the milling wheat, which makes up about 30 percent of the tonnage. We didn't have many quality issues because the DON was low. I'll sign up for another year like that, just with more kilos per hectare.'
Crushed wheat on the rise
There is no shortage of sales according to the grain trader. A large part of the milling wheat goes to the Wadden mill in Uithuizermeden, a large volume of feed wheat ends up in the broiler sector and many forage traders from Friesland and the polders also know where to find Pars.
Last year a new branch was added. 'More and more cattle farmers send in a load of unprocessed wheat every two weeks and then leach it themselves. It is important to them that it is a locally grown, safe raw material and does not come from Ukraine, for example. This has created a new sales market for us.'
Yet you operate in a global market, in terms of price movements, and that level is not very good. 'The prices are indeed low in comparison. The cost price of wheat is at least 190 to 200 euros, while the farmer receives around 155 euros. During August, September and October 2016 the market was very bad. However, because the yield was lower, we did not feel the need to sell. We did not sell most of the tons at that time. The market then improved slightly in early November. That choice positively influenced the pool prices.'
Thin market in wheat and barley
Although stocks on the world market have increased enormously, the Netherlands has to import heavily, he says Pars. 'It has been a thin market in wheat and barley in recent months. There is enough worldwide, but it is not always in the right place and it is not here. We have to rely on old wheat until the end of July. Our customers expect us to always be able to deliver.'
The director is therefore happy with growers who can supply large volumes. There is a bonus system for that. Anyone who supplies 250 to 500 tons receives a euro bonus, 500 to 1000 tons yields 1,50 euros and farmers who supply more than 1000 tons of wheat can add an extra 2 euros to their account.