July 31 2003, 14:25 Krestianskiye Vedomosti

Grain harvest in Kuban' is 90 pc completed

According to the Department of Agriculture and Food of Krasnodar Krai (Kuban', the southernmost region of Russia, the leader of grain production in the country) cereal crops and pulses in the region have already been harvested on 90 percent of the area, newspaper "Krestyanskie Vedomosti" informs. The gross grain crop constitutes now 3.33 million tonnes; the average yield - 3.36 tonnes per hectare.

Wheat harvest in the region has been completed on more than 90 percent of the area. The yield of winter wheat has averaged 3.64 tonnes per hectare, which is by almost 1 tonne per hectare below the last year's level (the region was affected by severe weather conditions in winter and spring, causing considerable damage to crops farming). Gross crop of wheat in Krai might in the best case reach 2.5 million tonnes, the newspaper writes.

According to a spokesman for the government-run "Kuban' Food Fund", profitability of growing wheat at the moment is fairly high. With the region's average cost-price of wheat production of about 1,100 roubles per tonne (30 roubles = $1), the Fund is buying from farmers the 3rd class wheat at 34,000 roubles, the 4th class wheat with 20 to 22 percent gluten content - at 3,000 roubles, with 18 to 19 percent gluten content - at 2,800 roubles, which can provide a fair earning for farmers. Barley is being bought at 2,200 to 2,300 roubles per tonne.

In the same period last year the Fund was buying 3rd class wheat at 2,400 roubles, the 4th class one - at 2,200 roubles per tonne. These were the highest prices, offered to peasants of Kuban' in that period, the spokesman says.

He says the current prices will not stay for long. The situation is now determined, first, by expected low wheat crop and, second, by decision of the region's authorities to set profitable bidding prices for grain growers. Grain trading companies, while purchasing the new crop grain, have so far had to pay the same level of prices too, which often bring them losses, as they have contractual obligations for grain supplies in this very period. But as soon as harvesting campaign takes its full swing in other regions, grain prices will fall. They will drop down to 3,000-3,200 roubles per tonne for 3rd class wheat, the representative of the government-run fund believes.