Cereals
UK Prices for Cereals 2000 - 2010
Cereal prices increased sharply in 2007-08 due to the impact of various factors
including: higher energy prices which increased cultivation costs; extreme
climatic conditions (e.g. droughts and floods) that reduced supplies; increased
demand for food and feed (e.g. in rapidly expanding economies such as China and
India) and maize for use in biofuels; and a fall in global stocks.
The artificially high prices fell after record harvests in 2008-09 and reduced
global trade levels due to weakened economies. However, prices remained higher
than pre-2007, and there have again been sharp increases in 2010 as a result of
lower production in Russia, due to severe droughts, and Ukraine and Canada due
to
extreme wet weather, as well as the implementation of some protectionist
measures (e.g. Russian export ban). Production in the EU is also expected to be
lower
than 2009.
Sources: Defra and Eurostat.
Notes: Figures are for weighted average prices computed in
returns received by the HGCA. Maize figures are not available for UK prices as
we do not grow enough. Figures provided are € prices from Eurostat converted to
£GB.
More Information
Contact Dominic Goudie at: dominic.goudie@fdf.org.uk,
or on 020 7420 7173.
Last reviewed: 24 Aug 2010