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Market Development June 2008
Many are quick to blame high-priced wheat and corn for escalating food prices, but the primary catalysts are $135 plus per barrel crude and higher overall production costs. Put it all together and it is hurting the UK economy.
We have reported in previous articles on this website the consequences of higher wheat and corn prices which came to a head in Mexico last year culminating in riots in the streets. World governments have had plenty of time to contemplate the long term consequences of higher food prices. Ones mind goes back to the times of the so called food mountains when intervention stored wheat had the effect of stabilising food prices throughout the then EEC, we had done something good for our own people but the thought of the complications it created for third world countries meant we had to change. Now we see how well off we were!
The price we are paying for UK wheat today is the true value of the commodity our farmers are growing and it is good to see that the growers who persevered through the lean times are now back to earning profits.
My answer to the rocketing cost of living and rising inflation problems would be to reduce the percentage of tax on petrol and diesel drastically – if the Government were to reduce the tax by 10pence per litre they would still be receiving tax in excess of the predicted fuel tax income published at the last budget.
We are financing wars in Iraq and Afghanistan which at least begs the question of affordability if you agree we should be there. The Government is financing these wars at the cost of our health service, our police service and the educational standards of our children. My point in mentioning these issues is to make it clear that our government have in their grasp the answers to the problems they have exacerbated with their ever increasing taxes on the populous.
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Cereal Stocks 2008
On 22nd May 2008 DEFRA released its latest figures on the quantities of cereals held on farms. The results show stocks held on farms at 31st March 2008. The own-grown stocks of wheat were at 3.1Mt on 31st March 2008, a 27% reduction on the March 2007 figure. Barley stocks were 9% lower at 0.38Mt. On 31st March 2008 25% of the wheat crop and 12% of the barley crop remained on the holdings where they were grown.
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Cereals 2008
This years Cereals exhibition and show is to be held on 11th & 12th June 2008 at Andrew Ward's Heath Farm, Leadenham, Lincolnshire. For more information www.cerealsevent.org.uk | 
