Grain prices will continue to be under pressure in the coming years, but will increase in the medium term. This expectation is stated in a report from the European Commission (EC) for 2017 to 2030.
In recent years, the wheat price in Europe has consistently been between €140 and €150 per tonne. These are also the prices that will appear on the boards in the coming years. The EC expects that grain prices will not rise above €200 per ton, as they did between 2011 and 2015.
However, an increase is expected in the medium term (from 2020). Between 2020 and 2030, the EC assumes a price range of €170 to just under €200 per tonne. The prices of barley and grain corn are expected to rise in the wake.
Demand is increasing
The expected price increase is a result of the increasing demand for grain. Compared to demand between 2012 and 2017, the EC predicts an increase of 10% in the medium term. The animal feed industry will remain the largest buyer of grain in the coming years.
In terms of yield potential per hectare, the EC does not think that much profit can still be achieved. The majority of European arable areas (EU-15) are at the top of their game with approximately 7 tonnes per hectare. The growth that can still be achieved will have to come from the new member states.
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