Grim harvest for maize grain growers
East coast maize growers, facing plummeting contract prices below production costs, are reeling after an influx of European maize flooded the market, causing a sharp decline in demand. Allan Newton of Federated Farmers Wairoa highlighted concerns over profitability, with many growers left with unsold crops despite significant investments. Late planting due to wet weather compounded issues, leaving growers uncertain about future planting without viable contracts and adequate support from authorities like the Ministry for Primary Industries.
East coast maize grain growers are questioning the viability of their industry after a season mired in poor contract prices that are well below the cost of production.
Federated Farmers Wairoa arable chair Allan Newton said the average price being offered to growers amounts to around $350 a tonne delivered to Waikato, well below the estimated $400-$430/ha it costs to grow the crop.
The maize grain market tanked after a shipment of thousands of tonnes of maize grain from eastern Europe from one company flooded the market and created a “fire sale”.
“It filled the silos and now they don’t want ours.”
Newton said growers met with these companies who were asked if they still wanted east coast-grown maize grain.
“Not one of them would answer the question.
“The price we are getting paid is less than the cost of growing it.
“There are a lot of people who are committed growers and have machinery specifically for that job and they have been doing it for years – year in, year out – and even if they don’t have a contract, they usually have no problem selling the maize.”
But contracts were few and far between for the 2023-2024 season. Farmers still grew the maize but it is hardly worth selling.
“We’re certainly not going to make any profit out of it this year.”
Newton is one of these growers, with 110-120 hectares still in the ground.
He said there had been little change in the price companies are charging end users – the dairy, pig and poultry sectors – for the feed grain over the past several months.
Compounding the situation was the unusually late harvest. Around 50-70% of growers through Gisborne and Wairoa still have some portion of their crop to be harvested.
This is because last spring was so wet that planting was very late – in some cases after Christmas – and some is only becoming ready for harvest now.
While having crops still in the ground in July is not unheard of, having such a high volume is, Newton said.
He estimated it could mean tens of thousands of tonnes of maize grain affected. This will impact not just the farmers but the wider regional economy.
Wairoa farmer and contractor Ewan Powdrell said it is affecting growers all over the North Island, including those in Waikato.
“We’ve been hung out to dry.”
Powdrell has about 70ha (800 tonnes) still to be harvested, which he was fortunate enough to find buyers for.
Growers like Powdrell planted maize last spring/summer on the premise they would be getting contracts from animal feed companies but they never came.
The payments that were offered were $100-150 less than their cost of production, he said.
“It’s been caused by a myriad of things. It’s the perfect storm to be honest. There’s a lot of grass been grown in Waikato for the dairy industry so they are using less supplement. Our biggest concerns are imported maize – 50,000t came in, in November and that just cooked things.
“The grain companies did not provide us with that information so we carried on planting when we could have stopped and stemmed the flow.”
With crops being planted late due to the wet spring, Powdrell said he would never have planted maize if he knew this grain was being imported.
“The whole industry is in peril to be honest, I’m sitting here wondering if they want us as grain growers.”
It has left Powdrell feeling completely disillusioned. If companies are not prepared to offer contracts that allow growers to make a profit, he will not be planting maize this spring.
“We need it to be $500 a tonne and it’s sitting at about $350.”
It came on top of three years of horrendous growing conditions on the east coast as it battled Cyclone Gabrielle. The more recent heavy flooding was rubbing salt into the wound, and he estimated a 1-1.5t/ha loss from flooding damage.
“It’s just another nail in the coffin. There’s a lot of guys wondering what are we doing? Why are we growing this stuff when we’re not getting paid enough for it. It’s too hard, our input costs are horrific.”
He also hit out at the lack of support from entities such as the Ministry for Primary Industries, saying growers are feeling forgotten.
Source Link: https://www.farmersweekly.co.nz/news/grim-harvest-for-maize-grain-growers/
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