Bloomberg News

Ukraine Corn Planting Will Decrease in 2012, ProAgro Says

November 16, 2011

Nov. 16 (Bloomberg) -- Ukraine will decrease corn plantings in 2012 and may grow more barley, according to agricultural researcher ProAgro.

“I am more than confident that corn planting will decline,” Nikolay Vernitsky, director of the Kiev-based agriculture researcher ProAgro, said by phone today. “Corn supply is big now and prices are not very attractive.”

Barley plantings may be increased in the spring, Vernitsky said. Farmers will choose their crops based on the condition of winter grain plants, and how exports and prices for corn develop, the analyst said.

Ukraine’s winter grains sprouted on 5.7 million hectares (14.1 million acres), or 71 percent of planted areas, according to the Agriculture Ministry’s data. Winter grains may be lost on more than 2 million hectares, Interfax-Ukraine news agency reported, citing Mykola Prysyazhnyuk, the agriculture minister.

Areas may be replanted with corn, barley, sunflower or rapeseed, Vernitskyi said.

Spring barley plantings declined by 8.1 percent in 2011 to 2.5 million hectares, after falling by 26.4 percent in 2010 to 2.75 million hectares, according to state statistics office data. A 14 percent export duty has been put in force through Dec. 31.

“Barley appears to be a more interesting crop for farmers now as prices have increased following the decline in planting and supplies in recent years,” Vernitsky said.

Prysyazhnyuk is traveling to Saudi Arabia this week, his spokeswoman Halyna Karpa said by phone. In September, the minister said Ukraine wanted a barley supply agreement with the country.

-- Editors: Sharon Lindores, Claudia Carpenter

To contact the reporters on this story: Kateryna Choursina in Kiev at kchoursina@bloomberg.net;

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net.


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