Russian farmers ditch wheat for other crops
Russian farmers are planning to sow less wheat in the coming season after experiencing heavy losses due to frosts, drought, and poor weather. Many are switching to more profitable crops like peas, lentils, and sunflowers. This shift could impact global wheat prices and inflation in major buyers like Egypt. Russia’s wheat harvest is expected to drop to 83 million tons, down from 92.8 million tons in 2023, with further declines predicted for next year. Export quotas will also be reduced, further affecting global wheat supply.
MOSCOW/IRTYSH (Reuters) – Russian farmers say they will sow less wheat after heavy losses this year, switching to more profitable crops such as peas, lentils, or sunflowers.
Such decisions will have direct implications for global wheat prices and inflation in major buyers like Egypt as Russia is the world’s top exporter of the grain.
The trend represents a challenge for President Vladimir Putin’s plan to expand exports and cement Russia’s position as an agriculture superpower, giving it more international clout amid confrontation with the West over its actions in Ukraine.
The country’s wheat harvest will decline to 83 million tons this year due to frosts and drought, down from 92.8 million tons in 2023 and a record 104.2 million tons in 2022. New forecasts point to a clouded outlook for next year as well.
Although Russia has been exporting wheat at a near record pace in the recent months, exports are expected to slow due to a bad harvest and export curbs aimed at containing domestic price growth, including an expected cut in export quota by two-thirds from January 2025.
At a farm in Siberia’s Omsk region, which was hit by heavy rain during the peak of the harvesting season, farmer Maxim Levshunov takes advantage of a rare sunny day to collect what remains in the fields.
He chuckles as he picks up stalks of wheat that sprouted early due to the moisture. Now, most of his crops are only suitable for animal feed, meaning the farm will receive a fraction of the price it had hoped for.
“We’ll probably start moving away from wheat, cutting back as much as possible. So, we’ll be thinking about what more profitable crops we can replace it with right now,” Levshunov told Reuters.
As this year’s harvesting campaign comes to an end, Russian farmers are assessing their losses from the exceptionally bad weather and considering their next steps amid falling profit margins for wheat, Russia’s main agricultural export.
Winter wheat became the first victim as areas sown with it are set to shrink by 10 per cent this year, the lowest since 2019, according to data from Rusagrotrans, Russia’s flagship grain rail carrier.
“There are losses on each ton. The selling price does not cover the cost,” said Arkady Zlochevsky, head of the Russian Grain Union industry lobby, predicting that Russia’s 26 per cent share of the global wheat trade will shrink.
Some farmers say they have already decided to plant less wheat next year. Others are waiting to see how global wheat prices perform in the next few weeks before making a final decision.
To read more about Wheat News continue reading Agriinsite.com
Source : The Western Producer
Here are some relevant hashtags for your post on the challenges facing Russian wheat farmers and the impact on global markets:
Recommended for you
