Grain question 2010

zernoThe financial crisis-2008 gave place to the grain crisis-2010

The results of the harvest campaign in 17 regions of the Russian Federation can upset even the most ardent optimists. Unprecedented heat in Russia has already destroyed 9,6 mln hectares of the sown areas. Seventy percent of the crops in Povolje were destroyed. The crops has been destroyed in Povolje where their destruction is 70 %. An emergency situation was announced in 17 regions of the Federation. Povolge and the Mary El Republic is preparing to impose a state of emergency. The natural cataclysm has already led to the increase of prices for grain in Russia as well as the world, according to

9,6 mln of “burnt-out” hectares is an approximate and has been promulgated on July, 15 according to experts. At the present time the heat is confusing and therefore, the number of burnt-out areas will increase. Despite assurances of Russian officials about this situation the forecasts are not comforting. Optimistic analytics estimate the harvest to be 80 mln ton. The realists deduct 5-10 mln ton from expected 80 mln.

The livestock sector is on the verge of collapse. The harvest destruction of the created a deficit of green fodder nutrition, hay and straw. Therefore, Russian livestock breeders have two choices – to kill the livestock or start the feeding them gains which, according to experts, can put the States grain reserves in danger.

The world grain market has immediately reacted on Russian complications – prices went up with a leap for grain almost on 20 %. According to the Institute of Prediction of Agrarian Market, until autumn the prices for this strategic product will increase on 20% more by autumn. Although a drought destroys the sowings in Western Europe, Kazakhstan, Argentina and Australia. Pouring rains destroy crops in Canada and Central Europe.

For Russian agrarians, it is obvious that summer grains are unpredictable because despite considerable investment of resources, the results can be unpredictable. The specialists of Russian agricultural sector assert that a threat can be eliminated only by on increase in the harvest of winter crops, which traditionally yield well even in regions with an extreme situation. An analysis of financial and natural crises led farmers to understand that farmers who bought expensive agricultural machinery with the recoupment of 5-6 years as minimum. But those who purchased and operated machines of domestic production have already recovered the expenses and realized profit. The domestic producers are ready to help the agrarians in sowing of winter crops by offering them the agricultural machines which are optimal in quality-price ratio and have to be repaid in one-two years of the work.

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