Wheat To Decline In Ukraine
4 April 2006 Grain production in Ukraine is expected to be down in 2006 from 2005 levels due mainly to a drop in wheat production of up to 36%. Replacing the wheat will be increased production of maize and barley, according to reports from the US Department of Agriculture’s Foreign Agriculture Service (USDA-FAS).
Dry weather and other factors contributed to a significant reduction in the area sown with winter wheat (Ukraine’s major crop) in the Fall of 2005. Poor crop conditions and low temperatures, and insufficient protective snow cover in late January 2006 further reduced production perspectives. USDA-FAS reports that 18% of the area planted with winter wheat in Ukraine in Fall 2006 (5.14 million hectares) was damaged and will require re-sowing with spring crops 2006. In addition, winter wheat yields in 2006 will likely be lower than average due to the thinning in remaining fields. The area planted with spring wheat in 2006 will increase to 600,000 hectares in response to high winterkill.
An expected expansion of the area under spring barley, wheat, maize, and other cereals is expected to partially compensate for the reduced wheat output.
The Government of Ukraine (GOU) will continue to intervene in grain markets in 2006/2007 by implementing legislative provisions that were adopted in 2004. Government intervention will be conducted via increased direct farm payments and price support programs.
Increased maize and barley production will allow farmers and compound feed producers to offset the reduction in availability of feed wheat and slightly increase overall feed utilization.
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