Business | General
Europe's farmers to grow wheat
European farmers look to have little option but to stick with wheat as they plant crops for harvesting next year with only a marginal decline in area seen despite a sharp drop in prices.
- Reuters
- Published: 23:02 November 9, 2008
London: European farmers look to have little option but to stick with wheat as they plant crops for harvesting next year with only a marginal decline in area seen despite a sharp drop in prices.
Farmers were quick to plant more wheat when prices soared last year, with area in Britain climbing 13 per cent, but the response to the market's decline has been much more muted despite stubbornly high input costs.
Difficult decision
"The planting decision was exceptionally difficult for farmers this year with prices falling for just about every crop," one German analyst said.
Analysts said wheat remains the most profitable crop for many European farmers despite the drop in prices, with yields often substantially higher than alternatives such as barley.
Milling wheat futures in Paris surged in Sep-tember 2007 as high as 300.00 euros (Dh1,411) a tonne on the benchmark second month.
A record world crop and the global economic crisis have, however, led to prices falling to less than half that level, trading on Friday at around 140.50 euros.
More from Business General
More from Business
Business Editor's choice
-
‘Wrong Way' Krugman
The source of our economic malfunction lies with government-mandated bank regulations
-
Greek exit could make Eurozone stronger
Departure will show limits of bailouts and allow remaining members to act much more like a unit
-
UAE upholds values of free trade
Recently released statistics confirm an established fact, namely that of the UAE embracing the free trade principle in general and imports in particular
