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 were sharp increases in 2010 as a result of lower production in Russia,
Ukraine and Kazakhstan due to severe droughts and wildfires, and in Canada and
Australia due to extreme wet weather, as well as the implementation of some
protectionist measures (e.g. Russian export ban). EU wheat production in 2010
was 8%
lower than the previous year and barley production also fell.
Sources: Defra and Eurostat. 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: 03 Jan 2012