Serbia And Montenegro Holds Steady
5 April 2006 Serbia expects a 10% boost in production of wheat on similar crop areas in 2006/07, while maize growth remains steady in terms of both area and production. The US Department of Agriculture’s Foreign Agriculture Service (USDA-FAS) reports that the region’s weather patterns could affect these numbers either positively or negatively, however.
Area planted to wheat for 2006 in Serbia is estimated at 540,000 hectares (Ha), about the same area as 2005. Planting of the wheat crop in the Fall of 2005 was delayed by almost a month due to a late harvest of maize because of a long growing season and wet field conditions at harvest. As a result, about 80% of the wheat crop was planted later than the optimal date.
Weather conditions were good for wheat development during the first half of January with temperatures staying above freezing, but extremely cold weather (-17 C) and lack of snow cover during the second half of January caused damage in some areas. The Novi Sad Institute for Crops and Vegetables reports that about 95% of the wheat crop is in good condition and about 5% of the crop has suffered damage due to the cold weather. Most of the damage occurred in the northern part of Vojvodina (Sombor and Kikinda) and in Loznica in the west. A good snow cover in March increased soil moisture that should help wheat development. However, melting snow in some parts of Serbia (North East Vojvodina and Central Serbia) in mid-March has caused the flooding of fields and could affect total wheat production.
Serbian wheat production for 2006/07 is projected to be around 2.2 million metric tons (MT), 10% higher than the previous year, with average yields forecast to be between 3.7 and 4 MT per Ha. The actual yield and production estimates will depend on growing weather conditions in the coming months.
At the beginning of March, wheat farmers started applications of mineral fertilizers. The parity price of mineral fertilizers this year is about 1 kilo of fertilizers for 2.5 kilos of wheat, while market prices range between 15,000 (US $208) and 22,000 (US $306) dinars per MT.
Area planted to maize in 2005/06 is estimated at 1.22 million Ha, almost unchanged from the previous year, and total production is estimated at 6.6 million MT. Maize planting intentions for 2006/07 is projected to be 1.2 million Ha. Planting of the maize crop normally starts in the first week of April and lasts until the beginning of May. Due to a long winter and heavy snow in mid-March this year, wet field conditions are expected to delay planting of the new crop, which could negatively impact the total corn yield. This has led Serbian agricultural analysts to forecast production at 6.3 million MT, assuming an average yield of 5.25 MT per Ha.
The area planted to maize in Serbia accounts for about 40% of the total field crop area. Farmers harvest the crop in October and November and can either take it to drying plants to or store on farms to be “naturally dried.” When farmers elect to store their grain on-farm, they usually sell their grain during what is called the “second harvest” in March before the start of the new planting season.
This year, the Ministry of Agriculture has reinstated its policy to provide production support to farmers in the form of diesel fuel and fertilizers subsidies. The Ministry has set aside 300 million dinars (US $4.2 million) to subsidize fertilizer purchases. Farmers will be reimbursed for 30% of their total fertilizer costs, with a maximum value of 1,000 dinars per Ha. Farmers will also be provided with 40 liters per Ha of diesel fuel at a subsidized price of 16 dinars/liter (US $0.22). These benefits apply to producers of both maize and wheat, as well as other crops.
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