UK: Cost Of Wheat Production In 2009 Circa GBP125/Tonne
The costs of producing winter wheat in 2009 are set to increase by up to 25% or £250 per hectare between 2008 and 2009 crops mainly as a result of higher input costs, according to TAG (The Arable Group) Consulting director Andrew Wells, reports the Farmer's Guardian.
Total costs, including field, storage, land and business costs for the 2009 crop will be between £1,000 and £1220/ha, depending on soil type, compared with £800 to £970/ha in 2008, he says.
Fertiliser costs alone will stand at £300/ha for the 2009 crop. Recent falls in some fertiliser prices have come too late for most growers, he concludes.
In 2008 the UK produced a wheat crop af around 17.5mmt off 2m hectares, with many producers citing record yields. This gives us an average yield this past season of 8.75mt/ha. Even if we were to achieve the same record ouput & yields again next season, using TAG's figures of a mean £1,100/ha cost, the the price of wheat next season needs to be £125/tonne to break even.
Total costs, including field, storage, land and business costs for the 2009 crop will be between £1,000 and £1220/ha, depending on soil type, compared with £800 to £970/ha in 2008, he says.
Fertiliser costs alone will stand at £300/ha for the 2009 crop. Recent falls in some fertiliser prices have come too late for most growers, he concludes.
In 2008 the UK produced a wheat crop af around 17.5mmt off 2m hectares, with many producers citing record yields. This gives us an average yield this past season of 8.75mt/ha. Even if we were to achieve the same record ouput & yields again next season, using TAG's figures of a mean £1,100/ha cost, the the price of wheat next season needs to be £125/tonne to break even.
