Russia can harvest another high crop in 2017 due to rising fertilizer sales

08.02.2017

Russian farmers had - in sowing winter grains across an officially estimated 17.4 Ml ha for the 2017 harvest - beaten both the government target and year-ago area of 16.3 Ml ha, the US Department of Agriculture's Moscow bureau said.

The increase in winter sowing was primarily due to strong grain prices in MY 2015/16, which supported grain producers’ incomes, and favorable weather and soil conditions for winter sowing in the fall 2016, reports UkrAgroConsult.

Moreover, the Russian government had been more generous with loans. According to the Ministry of Agriculture, the total sum of credits given to agricultural producers for financing of seasonal field works reached 330.2 billion Rubles, 31.8% more than in 2015.

According to the Ministry of Agriculture, in 2016 farmers bought 2.78 MMT of mineral fertilizer (in active ingredient), that is 278.4 KMT (11%) more than in 2015. Accumulated stocks of mineral fertilizer (including leftover from 2015) are 3 MMT, 332.9 KMT more than on the same date last year. According to provincial authorities, the 2016 mineral fertilizer “need” for seasonal field works is approximately 2.6 MMT. The average price in 2016 for mineral fertilizer was also lower than in 2015.

It is too early to do any forecasts, the increased winter crop area, better than last year inputs in winter sowing, and better winter crop conditions at the end of fall 2016, indicate that a good winter grain crop is likely in 2017.

 

UkrAgroConsult

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