August 24, 2012

Russia lowers grain yield forecast to 75 million tonnes

After reducing 2012 expectations because of drought conditions in farming regions, Russia's agriculture minister on Thursday (Aug 23) lowered the country's grain output forecast to 75 million tonnes.

The announcement by the world's third-largest wheat exporter comes amid spiralling global food prices and efforts by developed nations to stabilise the market so that poorer countries in regions such as Africa are not affected too severely.

Agriculture Minister Nikolai Fyodorov said Russia went into the year expecting to match the 2011 output of 94 million tonnes of grain.

"We started the year expecting last year's level," news agencies quoted the minister as telling the state's Vesti 24 news channel.

"Until a few days ago, we were forecasting 75-80 million tonnes. But today, we should probably stop talking about 80 million tonnes. We should be talking more about a figure closer to 75 million tonnes," Fyodorov said.

Fyodorov's initial reported comments did not explain what prompted the forecast reduction but Russia has been suffering from drought conditions in its southern farming region.

Russia's harvest was also hurt along with those of other European countries because of early winter frost.