A global grain deficit of almost 40 million tonnes will have a major impact on the grain market in 2025, creating both opportunities and challenges for European grain producers. While rising grain prices may mean economic gains and good sales opportunities here and now, it is necessary to address the competitiveness of the grain market of the future. Long-term success in the grain industry depends not only on being able to profit from current market conditions, but also on the ability to adapt to the conditions that today's market portends.
The global grain deficit, which is caused by a number of factors such as climate conditions, geopolitical crises and logistical challenges, has both short- and long-term consequences for grain producers worldwide. Poor harvest conditions in major grain-producing areas will have an impact on exports, as European grain producers must be able to compete on an international market that will have higher standards for, for example, stability.
"It is not only the amount of grain that matters," says Jan Lund, Director at SØBY. "If yields are low and quality fluctuates, it can have major consequences for sales, especially when we talk about exports. This requires European farmers to find innovative solutions to ensure the stability of both quantity and grain quality, so that we can maintain our position in international markets."
To reduce vulnerability to unpredictable market conditions and climate change, there is a growing need for European grain producers to increase their storage capacity. By having more storage capacity, producers can ensure optimal timing of sales, so they can take advantage of high market prices and avoid being forced to sell at lower prices under unfavourable conditions.
A stable supply of grain is also crucial to maintaining the confidence of international buyers and maintaining export markets. "A robust storage capacity allows farmers to better manage their crops and withstand external shocks," points out Jan Lund. "It's about being able to deliver stably in both quantity and quality, which is essential to remain competitive in global markets."
The global grain deficit therefore presents both opportunities and challenges, both in terms of short-term economic gains and long-term demands for efficient production. At the same time, European grain producers are faced with the requirement to achieve the necessary energy savings so that they can meet EU environmental and sustainability requirements.
"In order to meet both market needs and environmental standards, innovation and technology have become a necessity, not a choice," explains Jan Lund. "Although farmers today have many options to optimize their production, adapting to the grain market of the future requires modern solutions. The increased demand may provide economic relief, but competitiveness depends on whether one can future-proof one's production."