May 17, 2012

Ukraine's summer grain crops to decline on high material cost

Due to the rising cost of material and technical resources, a decline in yields in almost all summer grain crops in Ukraine is forecasted as compared with the previous year, according to APK-Inform experts.

In this regard, the farmers will be forced to economise on agricultural technology, which could then affect the quality of the crop. An exception could be barley, for which the orientation on brewing direction requires more rigorous approach to the technologies of cultivation. It may also be shortage of funds for conducting of field works due to replanting of large areas under winter crops, which also leads to a decrease in yield.

Thus, given the increase in acreage and lower yields, according to our forecasts, in 2012 gross yield of spring crops will increase by 2% - to 31.9 million tonnes in comparison with the previous year.

The forecasts on cereals, pulses and oilseeds, as well as changes in planted areas under major crops are presented in the panel survey "Sowing campaign 2012: spring sowing," conducted by our agency. In addition, the report shows the estimated cost per one hectare and calculated preliminary estimates of costs in 2012.

By May 16 agricultural enterprises had sown 4.4 million hectares of corn and 1.245 million hectares of soy, the Ministry of Agrarian Policy and Food of Ukraine said in the press-release. These are 100% of corn forecast and 95% of soy forecast. They had planted 212,000 hectares of buckwheat (75% of the forecast), 157,000 hectares of millet (67%), and 25,000 hectares of rice (89%).

As Ukrainian News reported, by May 14 the agricultural enterprises had sown 4.383 million hectares of corn and 1.199 million hectares of soy.