ZF English

Wheat prices run "First Silo" into the ground, but put 200m euros in farmers' pockets

26.08.2010, 23:56 8

This year's high wheat prices have run one of the mainanti-crisis measures of 2009, "First Silo", into the ground, atleast this is what the Agriculture Minister, Mihail Dumitru issaying.
Producers do not want, he says, to store their wheat and prefer tosell it at prices that can go as high as 200 euros per tonne.
According to producers, Romania has already exported 1.2 milliontonnes of wheat out of the 5.7 million produced this year, meaningthat against an average price of 170 euros/tonne on internationalmarkets, exporters have collected over 200m euros.
The "First Silo" programme is not attractive this year, says theAgriculture Minister. "The programme is underway, but in the yearswhen agricultural product prices are very high it is not anattractive programme".
It is not functional in 2010, but has it ever been? Large producerssay it has, while small producers' answer is negative.
However, the programme is intended for the entire agriculturalyield, not just wheat. "The programme will be an opportunityprimarily for sunflower and maize," says Ştefan Poenaru, owner ofAgrofam Holding of Feteşti.

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