News
13.07.2012
2012 grain harvest may fall to 40 million tons with lasting drought - expert
Dry weather conditions in June, which were observed over almost the entire territory of Ukraine, had a negative impact on early crops. Experts predict a decrease in Ukraine's grain harvest by 3 million tons to 44 million tons. With a subsequent deterioration of weather, grain harvest can be expected at around 40 million tons, President of the Ukrainian Agribusiness Club Alex Lissitsa told a press conference at UKRINFORM Tuesday.
"The average cost of early grain crops in the current year is 1,800-2,000 UAH/ton, while the sale prices, depending on quality, range within 1,500-1,700 UAH/ton. That is, production unprofitability is 15-20%, and farmers lose 300-400 UAH per ton. In the forest-steppe zone, where the situation with the harvest is somewhat better, most manufacturers as a result will scarcely come to a naught," the association head said.
In addition to material losses from bad weather, he said, a 75.6% increase in the normative monetary value of land has become an additional financial burden on farmers this year.
"Last year's decision of the Cabinet of Ministers on amendments to the methodology of regulatory pecuniary valuation of agricultural land increased regulatory pecuniary valuation of land by 75.6%, which increases the rent for land. And if in the past year farmers paid a rent of 6 billion UAH, this year it will be needed to pay at least 10.5 billion UAH. As a result, farmers will have to search their budgets for an additional of 4.5 billion UAH," the expert said.
Losses from the drought and the 75% land valuation index in total will take out of Ukrainian farmers' pocket about 10 billion UAH, Lissitsa underscored.
