Cereal yields are higher, but cheaper bread is not worth waiting for



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Jonas Talmantas, president of the Lithuanian Farmers Union, says that the harvest is not over, so it is too early to calculate the harvest.

“Although the end of the summer was spoiled by good weather, the losses could not be avoided either, when the rapeseed fields fell in May and it rained in early July. Fortunately, however, the weather later improved and the crop was not damaged. Farmers in a hurry are already finishing harvesting.

This year’s harvest should be 10-15%. higher than last year. Last year, farmers had to fight the drought, this year it was easier, although, as I said, there was no lack of natural antics, “explains the president of the farmers’ union.

Challenges in the grain export market

Ignas Jankauskas, head of administration of the Lithuanian Grain Producers Association, says that farmers have already adapted to changing weather conditions, they have learned to farm, so this year’s harvest is not bad. Of course, according to a representative of the cereal growers, the harvest could have been even better, but there really is no need to complain this year.

Wheat

“Farmers settled in central Lithuania are happy with a yield of 7-8 tons and one hectare. Well, in the less fertile regions, the yield is slightly lower in the west or northeast of Lithuania. However, it is still almost 20 percent higher. than it has been in recent years ”, says I. Jankauskas.

According to him, there are some concerns about the quality of the harvest, but so far farmers do not notice that the grain is inferior.

A good and bountiful harvest is often associated with lower prices for bread and other flour products. And low grain yields, in contrast to higher prices.

A representative of the cereal producers assures that this notion is incorrect.

“People often think that if the price of grain becomes cheaper or more expensive, then the price of bread will change. However, the price of grain in the cost of bread is certainly not the main part, but only about 3 -5% So, the grain harvest does not significantly affect the price of bread.

The price of bread is probably determined mainly by its packaging. You have to pay more for it ”, explains I. Jankauskas.

The president of the Lithuanian Farmers Union, J. Talmantas, also assures that the purchase of grains and the prices of bread are not related.

“When the prices of cereals fall, the prices of the bakeries continue to rise. Therefore, we should not expect cheaper bread,” says the farmer representative.

I. Jankauskas warns that this year cereal prices are slightly lower, around 10-15 percent. However, higher yields are expected to recover this.

“Many countries have a good grain harvest this year. And due to seasonality, the grain ‘export bottleneck’ is currently clogged. Lithuanians export about two-thirds of grain, so this market is important. for us.

Businesses are in no rush to buy grain, which means they stop paying cash for grain. For farmers, most payments are also made in the fall, which can lead to difficulties with financial obligations. However, we hope that everything is resolved and we do not suffer losses, ”says I. Jankauskas.



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