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News last update:6 Aug 2012

Ukraine: 50% of the grain will be lost as a result of frost

Due to the severe frost this winter about 50% of Ukraine's winter crops will perish – has been estimated by experts of the Ukrainian club of agrarian business.

"Under such circumstances our farmers will lose about a thousand of Hryvnias (US$ 250) per 1 hectare. They will compensate the losses through the rise of the cost. So we can expect a significant jump in prices for grain and flour in the coming agricultural season," an expert said.
 According to preliminary estimates due to deficit of the main grain crops, the cost of feed in Ukraine during the next season could rise by 25%, which would lead to a serious crisis in the entire livestock industry, as most manufacturers will not be able to afford feed at such prices.

But at the same time, the situation is not as critical as it was in 2003, when the strong winter had destroyed most of the crops, resulting in an acute shortage of not only feed, but also in food grain production.

"This year the situation is better. We have a large surplus in 2011, and there are excess of reserves that can be used in the current year. It should be enough for domestic consumption for the production of food. However there is no any possible way to avoid the crisis in the national feed market this season, " experts say.

According to Ministry of Agricultural and Nature of Ukraine, winter wheat amounts to an area of 6.5 million hectares, barley--1.2 million hectares, rye--0.3 million hectares and winter rape--0.9 million hectares.
The weather forecasts say the cold weather will not have subsided by March, an outlook predicting that the rate of loss of crops may continue to increase.

(Vladislav Vorotnikov)

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