April 7, 2011


Ukraine grain production to up 10% in 2011



Grain production in Ukraine in 2011 will increase by 10%, while the cost of grain production will rise by at least 28%, said the Ukrainian Agribusiness Club Association.


Experts of the association's Agro-Effectiveness project forecast that Ukraine could expect grain harvest at 43 million tonnes in 2011 (39.2 million tonnes in 2010), including 18.4 million tonnes of wheat, 8.9 million tonnes of barley, and 13 million tonnes of corn. Such a forecast was made on the basis of data on the sowing of winter crops and their condition after winter, as well as the expected area under spring crops and the projected level of grain yield.


Project Coordinator Roman Slasten said that a particular increase in the area under grain crops was not expected and added that there would most likely be structural changes and that corn would continue to displace less profitable crops, particularly barley.


The factor substantially limiting the growth of crop production in 2011 is a rise in prices for resources. Other components of the prime cost also increased. In addition, the projected growth of energy prices and the introduction of the land market in 2012, as well as the related additional costs for the registration of lease agreements, will be the key factors in the growth of production costs for farmers in future.


According to the Ukrainian Agrarian Confederation (UAC), due to a rise in prices for oil products, the costs of farmers on the sowing season will grow by UAH600 million (US$75.3 million) in 2011 compared to last year.