Serbian farmers protest as record wheat harvest fails to cover costs
Serbia’s wheat farmers face record yields of 5.5–5.6 tonnes per hectare but low prices of 21 dinars/kg, barely covering costs. Global competition from Russian and Ukrainian grain keeps prices down. With maize selling higher, some use wheat as feed. Analysts expect possible winter price rises amid market uncertainty.
Serbian wheat farmers are grappling with a frustrating paradox: a record harvest of 5.5–5.6 tonnes per hectare with high quality, yet market prices of 21 dinars (£0.15) per kilogram barely cover production costs. Agro-economic analyst Žarko Galetin told N1 that despite the bumper crop, farmers feel their year-long efforts have yielded little financial reward due to these low prices.
This year’s wheat harvest in Serbia reached 3.5 million tonnes, with 1.5 million tonnes sufficient for domestic needs and 2.5 million tonnes available for export. However, global market pressures, particularly from inexpensive Russian and Ukrainian grain, have kept prices suppressed. Galetin noted that farmers need at least 23–24 dinars per kilogram to break even, with the state purchasing wheat at 23 dinars in July, offering a slight edge over market rates.
Adding to the challenge, maize is currently selling for up to 20% more than wheat, leading some farmers to use wheat as livestock feed. Analysts anticipate a potential price increase by winter, but global market instability could swing outcomes either way. Without a turnaround, many farmers believe leasing their land might have been more profitable than cultivating it.
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Source : Ukr Agro Consult
