Need Grains? Go to Russia -CEE - Harbors can not handle the amounts for exports
Russia's grain harvest has amounted to 65 million tonnes so far this year, 37.1% higher than at the same time last year, the Agriculture Ministry said in a statement Monday, ITAR-TASS reported.
The ministry added that 20.7 million hectares, or 44.6% of the planted area, had been harvested so far.
The country's grain harvest is expected to exceed the last forecast of at least 85 million tonnes in 2008, Agriculture Minister Alexei Gordeyev said earlier in August. Meanwhile, the Russian Grain Union projects that the country's farmers will harvest up to 95 million tonnes of grain this year.
Prime-Tass
Today, in the context of Russia’s fast-paced growth of economy and trade, there are significant opportunities emerging for the national agricultural sector. Russia has great natural and human resources, vast spaces of arable land suitable for cultivation, and substantial market capacity. Moreover, fertility of soils and the world’s largest raw materials stock for production of pesticides contribute to the potential of agricultural production. In terms of exporting, such factors should be noted as geographical proximity to potential markets, relative cheapness of machinery and level of wages which allow to set competitive prices. Besides, Russian companies do not widely apply methods of genetic engineering using traditional technology instead, which creates additional competitive advantage for Russian agricultural products. Unused lands in Russia are not constrained by any government policy or major sustainability concern. This unique combination of factors together with worldwide situation on food and feed markets offer substantial investment opportunities in the Russian agriculture.
According to the Ministry of Agriculture of Moldova, wheat croppage in the country is to increase three-fold to 1.3mn tons in 2008 against 2007. Food wheat is to account for 400,000 tons of total output. Moldova wheat demand is estimated at 345,000 tons per year. About 40,000 tons of food wheat are to be bought for the government reserve. Areas under first-group cereals and rape amounted to 570,000 hectares approximately in 2008. About 380,000 hectares were sown with wheat. This year first-group cereals and rape croppage is expected to total 1.7mn tons.
On the commodity exchange in Rousse traders are ready to pay about BGN180/ton, and in Sofia they are inclined to pay BGN220-240/ton, but no deals have been closed because the lowest selling price is BGN260/ton. The situation is similar regarding fodder barley for which traders pay some BGN250/ton. The harvest of that crop ended towards the end of July and according to Agriculture Ministry data, some 830,000 tons have been gathered. Corn reserves worldwide are about 10 million tons this year. The new crop in the USA promises to be quite good which led to its cheapening in the last month. The price of corn in the USA is currently USD245/ton. The biggest producers in Europe - Hungary and the Ukraine - offer it a bit more expensively.
Novorossiysk Commercial Sea Port (NCSP) does not cope with the increased supplies of export grain. Long queues of 300 to 400 trucks with grain have formed near the port as the port terminal can only accept 700 trucks. The situation is typical for the port raising also from grain traders trying to get maximum profit from the high demand for grain in the world market at the beginning of export season.
According to Arkadiy Zlochevsky, Russian Grain Union President, the region of Azov and Black seas has 99% of the country grain transshipment capacities. The ports of the Russian South can only handle no more than 20mn tons of export grain. Grain crop may total 110mn tons in 2008 with local demand totaling about 70mn tons. Aleksey Bezborodov, Infranews agency CEO, thinks it is necessary to construct 2-3 new grain terminals with total capacity of 5-6mn tons in South Russian ports. Tuapse Commercial Sea Port is building grain handling facility with the capacity of 2mn tons a year with a storage facility for 102,000 tons. Its test launch is planned in February 2009.
Bulgaria (pop 8+ million) has produced over 4,4 million tons of wheat in 2008, which means the country might export up to 2 million tons in the coming months. Photo by bulphoto.com
Bulgaria's Minister of Agriculture and Foods Valeri Tzvetanov announced Tuesday the wheat and barley production in 2008 was a record for the last sixteen years.
According to the Ministry's data, the last time the country had average wheat and barley yield of over 400 kg per decare was in 1991.
Tzvetanov said the record production was the result of two major factors: the proper techniques applied by the farmers, and the favorable weather conditions during the last several months.
A total of 10 073 924 decares of wheat have already been harvested, which is 97,91% of the total planted wheat (10 301 776 decares).
The wheat production so far is 4 408 107 tons, which means an average yield of 438 kg per decare. The highest yields are in Bulgaria's northeast and northern districts - Dobrich - 536 kg per decare, Silistra - 507 kg per decare, Razgrad - 472 kg per decare, Pleven - 458 kg per decare, Sliven - 459 kg per decare, Vratsa and Varna - 448 kg per decare.
The barley yield is at 901 707 tons from a total of 2 253 633 decares.
The harvesting of the most popular energy plant in Bulgaria, which is grown by more and more farmers, rapeseed has almost been completed. The total yield of rapeseed stands at 233 473 tons from a total of 937 000 decares. Thus, the average per decare yield is 266 kg.
According to Bulgaria's Deputy Agriculture Minister Svetla Bachvarova, the country might be able to export up to 2 000 000 tons of grain in 2008.
Between July 1 and August 3, 2008, Bulgaria has exported a total of 110 000 tons of wheat at an average price of BGN 350 per ton, and 140 000 tons of barley at an average price of BGN 337 per ton.
Most of the grain exported already was destined for Saudi Arabia (102 000 tons), Libya (13 000 tons), and Egypt (12 000 tons).
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