Cereal production one of most profitable in 2011: EU

Xinhua, Brussels :
Cereal production was one of the most profitable parts of agriculture in the European Union (EU) in 2011, according to the EU cereal farms report 2013 published by the European Commission Tuesday.
Based on Farm Accountancy Data Network data, the report reviews developments in costs of production, margins and incomes in EU cereal farms between 2004 and 2011.
The average income of cereal producers stand at 26,500 euros (36,040 U.S. dollars) in 2011, which was double the 2009 level and 40 percent above the average for 2004-10.
Cereals account for one-quarter of the EU’s crop production value and for one-eighth of the total value of its agricultural products. Half of EU farms grow cereals, and cereal crops occupy one-third of the EU’s agricultural area.
According to the report, the gross margins obtained per hectare of cereals or per tonne of grain in the EU were much better than in their low point in 2009, but did not reach the high 2007 level because of the increased production costs.
Gross margins in 2011 were nevertheless 36 percent higher than the average for 2004-10. Estimates for 2012 showed a further improvement in the profitability of cereal crops.
Although margins improved for all cereal sectors, the margins for specific crops varied widely.
Grain maize had the highest margins and the best recovery from the 2009 profitability lows, with an average gross margin of 870 euros per hectare in 2011.
Meanwhile, wheat margins stayed at around 400 euros per hectare, with margins for durum wheat a little lower than for soft wheat.