A Welsh farmers' leader today called on the EC to release supplies from its intervention stock of cereals in a bid to combat soaring prices on the European market.
"There are growing fears that Welsh livestock farmers' incomes will be seriously undermined by increasing costs of animal feed due to the strong demand for grain on the world market which is driving up prices," said Farmers' Union of Wales president Gareth Vaughan.
"I am well aware that over the past month or so the price some Welsh farmers have paid for animal feed has increased by around £25 a tonne," said the Newtown sheep farmer.
The world market situation is currently dominated by the Russian export ban and Ukrainian moves to curtail grain exports following devastating droughts in both countries this summer.
"Although we have an increasing number of farmers growing cereal crops, traditional Welsh farming is still very much dominated by livestock rearing and the industry is at the mercy of ever-increasing production costs," said Mr Vaughan.
"Unfortunately, the EC is reported to have concluded that there is 'not an urgent need to release stocks from intervention'.
"But consideration of releasing such stocks, to keep grain prices in check, has continued to gather apace within the European feed industry and some member states, particularly net grain importer Spain.
"I believe the UK government should also be demanding similar action to safeguard the immediate prospects of Welsh agriculture," Mr Vaughan added.
Earlier this month the European Feed Manufacturers' Association, FEFAC, called on the Commission to release some of the five million tonnes of intervention cereals (mostly barley) which the EU currently holds.
"Placing such stocks back on the EU market is essential to help combat undue speculation and price volatility," the group said, warning that a degree of "artificial" price inflation is occurring in addition to the impact of poor harvests in key supplier countries.