Wheat prices run "First Silo" into the ground, but put 200m euros in farmers' pockets
This year's high wheat prices have run one of the main
anti-crisis measures of 2009, "First Silo", into the ground, at
least this is what the Agriculture Minister, Mihail Dumitru is
saying.
Producers do not want, he says, to store their wheat and prefer to
sell it at prices that can go as high as 200 euros per tonne.
According to producers, Romania has already exported 1.2 million
tonnes of wheat out of the 5.7 million produced this year, meaning
that against an average price of 170 euros/tonne on international
markets, exporters have collected over 200m euros.
The "First Silo" programme is not attractive this year, says the
Agriculture Minister. "The programme is underway, but in the years
when agricultural product prices are very high it is not an
attractive programme".
It is not functional in 2010, but has it ever been? Large producers
say it has, while small producers' answer is negative.
However, the programme is intended for the entire agricultural
yield, not just wheat. "The programme will be an opportunity
primarily for sunflower and maize," says Ştefan Poenaru, owner of
Agrofam Holding of Feteşti.