GROWER DISSATISFACTION WITH SEED PREMIUM - DELANY
Monday, 28 February 2011 10:24

IFA National Grain Committee Chairman Noel Delany said that many seed grain
growers are extremely dissatisfied with the level of premium on offer for
seed from a number of the major seed houses.

Mr. Delany said, “Initial findings from an ongoing IFA seed survey showed
that the premium for spring seed barley last season ranged from as low as
€20/t on the first 2.6t per acre with half the premium payable on the excess
tonnage while other companies were fit to pay a full premium of up to €30/t
across all tonnes produced.”

“The production of seed is a specialist job requiring dedication and
attention to detail by growers. Many growers would be financially better off
growing a commercial grain crop particularly when they are being paid at the
lower end of the premium scale. Blue label seed is expensive and growers
carry all the financial risks associated with increased production costs and
seed crop failure.”

He said, “The level of premium paid must reflect the substantial increase in
costs that growers have incurred in recent years. Many more specialist
farmers will quit seed production if the premium does not give an adequate
return on time and investment. The seed trade needs to wake up and pay
growers a realistic seed premium.”