French protein subsidy increase won’t harm UK pulse production, says Nickerson
The French government’s decision to pay its pea and bean growers an additional €150/ha over and above the existing €56/ha protein subsidy is unlikely to have any real impact on the UK market in terms of demand or the prices which farmers receive, according to leading plant breeder Limagrain UK (Nickerson).
Les Daubney, the company’s Pulse Product Manager, says that whilst it is understandable that some UK growers are questioning whether it is worthwhile continuing to produce these crops, Nickerson’s view is that they have a bright future in this country. He states:
"There is far more to the situation than initially meets the eye. The French have said that the aim behind the additional subsidy is to reduce the country’s dependence on imported soya protein, as their pea acreage has fallen by as much 80 per cent from its peak. They also want to reduce fertilizer use. Their actions were taken under Article 68 of the CAP Health Check, which allows up to 10 per cent of a country’s Single Farm Payment to be retained and redirected to specific targets, particularly those with environmental benefits.
"Whilst the additional subsidy will undoubtedly increase the area of pulses grown in France during 2010, this is likely to be limited by the availability of seed. Nickerson’s view is that the French decision will have little effect on the UK market, because most peas grown in France are white winter varieties which are used to produce animal feed and any surpluses have traditionally been exported to India. The French have never produced large acreages of large blues or marrowfat peas, so they have never really competed for our premium markets which demand these types of peas and remain undersupplied. The UK will therefore be largely unaffected by the French action and market demand will continue to grow.
"Spring beans are grown on a significant scale in the north of France and the French do compete with us for lucrative export markets, particularly in Egypt, so their subsidised beans will be a threat if they can get the quality. However, there are big question marks over whether they can achieve the standard required for export markets. Bruchids originated in France and the larvae of the Bruchid Beetle leave unsightly holes in beans which can ruin the potential of crops destined for human consumption, especially markets the Middle East.
"For most UK growers the Export Premium on beans is a bonus; they don’t often get it, but keep growing the crop for sound agronomic reasons. Beans contribute residual nitrogen, are a low-input crop, provide a good spring cropping option for farmers in the North, play a valuable role in controlling black-grass, help to spread the harvest, are a good spring option for heavier land and can be sown earlier. All of these factors add a significant financial and agronomic value to the crop and the rotation.
"In reality, therefore, the volatile wheat price will affect the bean price more than the possibility of the Export Premium and with £10+ per tonne contracts being offered, Nickerson’s view is that the bean area will remain at traditional levels. In recent years Nickerson have built up the market for peas and beans, while growers have made good money from these crops. Now is not the time for UK growers to throw in the towel because of completely unjustified concerns over the impact of the French action."
