August 23, 2011

Serbia's wheat yield rises 28%

The 2011 wheat crop of Serbia increased 28.4% to 2.093 million tonnes, with better weather being the main contributing factor, the state statistics office said.

The total beat the office's own June 20 estimate when it said it expected a 15.1% increase to 1.88 million tonnes. Average yield rose to 4.25 tonnes/hectare this season from 3.37 tonnes/hectare in 2010, the statistics office said. The crop was harvested from 492,989 hectares, less than 1% increase from a year ago, according to the report.

"With harvest like this, Serbia should be able to export some 500,000 tonnes of wheat" until the next season, said Vukosav Sakovic, the head of Zita Srbije, the national association of wheat exporters and producers.

The estimate is based on expected local annual consumption of 1.6 million tonnes and the current wheat reserves of about 100,000 tonnes, he said after the numbers were released.

Wheat and other grains, mainly corn, generate around 5% of Serbia's annual exports, while the whole agricultural industry accounts for 11% of the nation's economy. Serbia had a three-month ban on wheat exports earlier this year when a surge in demand abroad threatened to drain domestic supplies.

Corn production may decline 4.4% this year to 6.89 million tonnes, the statistic's office also said, pending final results for the crop next month.

The soy harvest is seen falling 13.6% from a year ago and sugar beets production may decline 19.2%, while sunflower seeds harvest will increase 12.8% to 4.27 million tonnes.