Seed Growers Optimistic

Herbage seed prices are lifting to levels never seen before in New Zealand, says the chair of the Herbage Seedgrowers Subsection of Federated Farmers, Hugh Wigley.



“Indications have never looked better for a substantial lift in the price of small seeds, with grass seed following the rise in world grain prices,” Mr Wigley said.



Herbage seed growers in New Zealand grow seeds for various types of forage and turf grasses, pulses, and clovers.



“A combination of higher-than-expected dressing losses on the Oregon harvest, following indifferent weather during the growing season, has meant the turnout to market has been lower than predicted.



“In Europe, wet harvest conditions have reduced both quantity and quality of the 2007 harvest. It is important to note that the New Zealand herbage seed harvest is the last harvest in the world, and any shortfall in the world seed harvest will have to be met from New Zealand.



“One factor that will have an influence on the size of future seed harvests in both America and Europe is that more land is being planted in grain to meet demand. The worsening Australian drought and lowering of the Australian grain harvest estimates, are also exerting an upward pressure on world grain prices. These factors are all combining to lift herbage seed prices,” said Mr Wigley, a grower from Waimate.



“In the New Zealand market there is good demand for forage and turf grass seed of both proprietary and common varieties. Nui is being quoted at $2.20 a kilogram for the 2009 harvest and a large European seed company is actively seeking seed from growers.



“With the rapid turnaround in the fortunes of the herbage seed industry, there is a danger that growers could get left out and not receive the lift in price that is the result of a shortened world seed supply. Growers are advised before signing a contract for seed for the 2009 harvest, to check out options and prices thoroughly, said Mr Wigley.