asked the Minister for Agriculture and Fisheries the average price for feeding barley paid by grain merchants to farmers for the 1976 crop; and the current price for barley from grain merchants' stores.
Ceisteanna—Questions. Oral Answers. - Barley Prices.
2.
There is no official control on the price of barley. Prices are negotiated between buyer and seller and can vary having regard to the location, quality and moisture content of the barley in question. The generally accepted final producer price for barley at 20 per cent moisture this year is about £67 per tonne. However, as moisture content averaged around 16 per cent many producers received in excess of £70 per tonne. The current price for dried barley ex merchants store is about £90 per tonne.
Does the Minister consider that buying barley at £70 and selling it at £90 is an incentive to farmers?
Whatever we consider, Deputy, there is nothing we can do about it. This is free competition. Farmers are free to hold barley or to sell it. Two years ago the merchants suffered substantial losses because they paid prices well in excess of intervention prices at harvest time and then barley became much cheaper. I have asked them to use some of this profit to help the promotion of additional cereal growing.
Would the Minister ensure that a realistic price is paid for next year's harvest? It was well known that barley would be dearer last year. A lot of people have to sell barley as they cannot keep it.
The Department have no power to intervene in this matter. It is a free market in Europe as a whole. This year was exceptional because of the green £ adjustment that gave an additional £5 at a particular time on exports to the North of Ireland.