August 11, 2010

Bulgarian producers and traders see strong grain exports

Bulgarian grain producers and traders anticipate harvesting a slightly higher quantity but with lower quality this year; exports are expected to approach last year's 1.1 million tonnes but revenue is seen higher thanks to soaring prices.

Currently, 93% of Bulgaria's wheat fields have already been harvested.

This year's grain harvest is estimated at about 3.6 million tonnes, which will bring the total to 3.8 million tonnes together with 2009 stockpiles, said Krasimir Avramov, chairman of Bulgaria's grain consultancy council and member of the Grain Producers' Association. The average yield per decare (0.247 acre) is seen at 240-350kg.

Data by the Ministry of Agriculture said the harvest is approaching completion, moving on at a slower pace only in south-western Bulgaria, which was plagued by rain showers almost throughout July.

However, preliminary data show that the new crop has a poorer quality. The Chief Directorate for Grain and Grain Products said that around 35% of the grain is good for bread production compared with 47% a year earlier.

Meanwhile, grain producers announced they are currently positioned for solid exports due to the surge in prices, which means more revenue for the sector. They anticipate shipping abroad 1 million -1.1 million tonnes of wheat, a level close to last year's. Up till now, exports amount to approximately 280,000 tonnes, the bulk of it fodder grain. The grain traders' association said the largest portion has been shipped to EU countries.

The average price of a tonne of wheat in Bulgaria is still hard to pinpoint. Data by the Sofia Commodity Exchange (SCE) show there are buy offers of BGN200-250 (US$134-US$168) per tonne and sell offers for BGN280-300 (US$188-US$201) per tonne. SCE head Vasil Simov said no real deals have been struck yet.